Dáil Éireann Debate, Tuesday - 2 November 2021
576. Deputy Seán Canney asked the Minister for Social Protection her plans to increase the means threshold for disabled persons when the income of their spouse is taken into account when assessing disability allowance applications; and if she will make a statement on the matter. [52084/21]
View answer577. Deputy Seán Canney asked the Minister for Social Protection her views on whether it is fair to include the income of a spouse when assessing applications for disability allowance in view of the additional costs that disabled persons encounter in their daily lives; and if she will make a statement on the matter. [52086/21]
View answerI propose to take Questions Nos. 576 and 577 together.
Social welfare legislation provides that, for social assistance schemes, all income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her spouse/partner, where applicable, are assessable for means assessment purposes.
The means test plays a critical role in determining whether an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring.
If a claimant is married, in a civil partnership or cohabiting, the Department will assess the couple's means when carrying out a means test for a social assistance payment. This is the case even if only one of the couple is actually claiming a payment. This is not exclusive to Disability Allowance and applies to all of the Department's social assistance schemes.
The purpose of assessing household, rather than individual income, is to ensure that resources are targeted at households which need them most.
It should be noted that the household means limit for a Disability Allowance claimant with a spouse or cohabiting partner is higher than for a single claimant. This is because the rate of payment is calculated with reference to the family rate, which is based on full personal rate, a full qualified adult rate and full child dependent rate/s (where applicable) less means.
This means that, for example, a claimant living with their spouse or partner can have household means of up €337.50 and still retain entitlement to a minimum payment, compared to €202.50 for a single applicant.
From June 2022 the general means disregard for recipients of Disability Allowance will increase from €2.50 to €7.60 per week. Together with the €5 increase to the personal rate of payment and €3.30 increase for qualified adults from January 2022, this will mean that a claimant living with their spouse or partner with weekly household means of up to €350.10, or a single applicant with means of up to €212.60 will be entitled to a minimum payment.
The capital assessment formula applying to Disability Allowance is also unique in the social welfare system, in that the first €50,000 is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand. For most other social assistance schemes, the amount that is fully disregarded is €20,000.
Any changes to the means assessment criteria for Disability Allowance would need to be considered in an overall budgetary and policy context.
