Dáil Éireann Debate, Tuesday - 25 January 2022
440. Deputy Christopher O'Sullivan asked the Minister for Social Protection if the criteria which are applied to means tested social welfare benefits such as disability allowance and medical cards takesinto account compensation payment the recipient may have received from the State; and if she will make a statement on the matter. [3531/22]
View answerThe system of social assistance supports provide payments based on an income need. The means test plays a 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 application of a means test not only ensures that the recipient has an income need but also that resources are targeted to those with the greatest need.
Any income or capital, with certain exceptions and disregards, belonging to the person and his / her spouse, partner or co-habitant is assessable for social welfare means testing purposes.
Social welfare legislation provides for the disregard of certain compensation awards when assessing the means of a person. These disregards include, for example, all income derived from compensation awarded by the Hepatitis C and HIV Compensation Tribunal, the Residential Institutions Redress Board and in relation to disability caused by Thalidomide. Any payment made by the Residential Institutions Statutory Fund Board is also disregarded for social welfare means test purposes.
In addition, ex gratia payments made to women who were admitted to and worked in the Magdalen Laundries, or through the Symphysiotomy Payment Scheme, or payments made by the Minister of Health in accordance with recommendations proposed by the Scoping Inquiry into the CervicalCheck Screening Programme are also disregarded.All compensation or court awards which are not specifically provided for in social welfare legislation are assessed in the normal manner.
The formula for assessing the value of capital for most social assistance schemes is as follows: the first €20,000 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.
The exceptions to the formula above are Disability Allowance (and Carer's Allowance from June 2022), where the first €50,000 of capital is not taken into account, Supplementary Welfare Allowance, where the first €5,000 is not taken into account, and the Working Family Payment, where capital is not taken into account at all.
Any changes to the means assessment of social assistance schemes would have to be considered in the overall policy and budgetary context.
The means testing criteria for the Medical Card are a matter for the Department of Health.
