Dáil Éireann Debate, Tuesday - 25 January 2022
401. Deputy Marc MacSharry asked the Minister for Social Protection if she will review the legislation governing the invalidity pension means test for claiming an increase for a spouse, civil partner or co-habitant to assess income net of USC, PRSI and PAYE, instead of the gross income of the latter (details supplied); and if she will make a statement on the matter. [2920/22]
View answerInvalidity Pension recipients can claim an increase in their payment in respect of a Qualified Adult, subject to a means assessment. A Qualified Adult is the spouse, civil partner or cohabitant of the pensioner who is being wholly or mainly maintained by that recipient.
The means assessment 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.
It should be noted that the means test applies to the IQA element of the payment only and not to the personal rate, which is dependent on the claimant meeting the medical and social insurance criteria of the scheme.
The nature of means-tested schemes and payments is that above a certain income or means threshold, a claimant loses their entitlement to a payment. However, the tapered nature of the IQA payment for Invalidity Pension aims to avoid a "cliff edge", as reduced rates are payable depending on the level of means a person has.
An increase is payable at the maximum rate of payment where the means of the spouse or partner are €100 a week or less, while reduced rates are payable where the means are over €100 and less than €310 per week. No increase is payable where the means of the spouse or partner are in excess of €310 per week.
In assessing the means of the qualified adult, gross earnings are used, and no deductions are allowed for PAYE, USC or PRSI.
People pay varying amounts of PAYE, USC and PRSI depending on their level of earnings and personal circumstances. Allowing taxation as a deduction in the means test could mean that the social welfare system, in effect, refunds a person's tax liability.
I trust this clarifies the position for the Deputy.
