Dáil Éireann Debate, Thursday - 30 September 2021
279. Deputy Marian Harkin asked the Minister for Social Protection if she will raise the €350 income threshold on the earnings disregard on disability allowance to €400; and if she will make a statement on the matter. [47306/21]
View answerThere are currently in excess of 156,000 persons in receipt of means-tested disability payments from the Department, comprising some 154,500 persons in receipt of the Disability Allowance (DA) and some 1,060 in receipt of Blind Pension (BP).
The means assessment of DA reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves, so that social welfare expenditure can be directed towards those who need it most.
In the means test, cash income that is assessed includes any income from employment or self-employment (and spouse/partner, if applicable), income from a social security pension from another country and maintenance payments.
Capital assessed as part of the means test includes all monies held in financial institutions or otherwise, the market value of shares, as well as houses and premises owned by a claimant which may or may not be put to commercial use. The family home is never assessed as part of the means test, regardless of who is the legal owner.
Recipients of DA are supported to pursue employment or self-employment through earning disregards in the means test. Budget 2021 saw a €20 increase to the earnings disregard, from €120 to €140 per week for both DA and BP. As of June 2021, a DA (or BP) recipient can earn up to €140 per week from employment or self-employment without their payment being affected, while weekly earnings between €140 and €350 are assessed at a 50% rate only (i.e. 50% of earnings in this band are disregarded for the purposes of the means assessment). Earnings from employment over €350 per week are assessed on a euro for euro basis.
The conditions attached to payment of DA are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency – be that illness, disability, unemployment or caring.
The Department continues to keep its range of income supports, including disregards, under review and any change proposed would have to be considered in an overall policy and budgetary context.
