Dáil Éireann Debate, Thursday - 3 February 2022
305. Deputy Paul Kehoe asked the Minister for Social Protection the reason that the means test disregard previously offered to a person (details supplied) whilst on disability allowance was not carried over to the new payment of the non-contributory pension; and if she will make a statement on the matter. [5545/22]
View answerSocial welfare legislation provides that all income and capital belonging to an applicant (and his or her spouse/partner, where applicable) is assessable for means testing purposes for social assistance schemes. While some elements of the means testing arrangements are common to all schemes, there are some elements which vary from scheme to scheme.
The assessment of savings and other capital reflects the fact that there is an expectation that persons with reasonable amounts of capital are in a position to use those savings to support themselves without having to rely solely on a means tested welfare payment.
In the means assessment for a personal rate state pension non-contributory entitlement, the first €20,000 of capital an applicant holds is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
For disability allowance, an applicant can have up to €50,000 in savings and still receive the full rate of payment; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
Where a person has been in receipt of disability allowance immediately before becoming entitled to state pension non-contributory, and could stand to lose out financially due to the different means testing criteria, legislation provides that the rate of state pension non-contributory payable is at least equal to the due rate of disability allowance applicable in the same circumstances. This ensures that disability allowance recipients are not financially worse off when they move to receive state pension non-contributory. This provision has been applied in the case of the person concerned.
I trust this clarifies the matter for the Deputy.
