Dáil Éireann Debate, Tuesday - 12 July 2022
615. Deputy Duncan Smith asked the Minister for Social Protection the capital disregards that are taken into account by her Department in respect of applications by persons for the State pension (non-contributory) and disability allowance payments in cases in which the applicants are married persons; and if she will make a statement on the matter. [37318/22]
View answer616. Deputy Duncan Smith asked the Minister for Social Protection the position that applies to applicants for means tested payments to her Department, such as the State pension (non-contributory) and the disability allowance in cases in which one of the partners in the marital relationship reaches pension age and has no assets at all in their own name and the other partner has a landholding worth circa €300,000; if their application as the non-owning spouse is not affected by the ownership of the asset by the other spouse in respect of their entitlement to a State pension (non-contributory); and if she will make a statement on the matter. [37319/22]
View answerI propose to take Questions Nos. 615 and 616 together.
Social welfare legislation provides that, for social assistance schemes such as the State Pension (Non-Contributory) and Disability Allowance, 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/cohabitant, where applicable, are assessable for means assessment purposes.
The system of social assistance supports provides 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 – such as disability, unemployment or caring. This ensures that each recipient has a verifiable income need and that resources are targeted to those who need them most.
If a claimant is married, in a civil partnership or cohabiting, the means of the couple will be assessed. This is the case even if only one of the couple is actually claiming a payment. The means assessed include income from employment or self-employment, non-social welfare pensions, and the capital value of savings, investments and property other than the family home. It should be noted that the value of the family home, regardless of who is the legal owner, is never taken into account in this assessment.
It should be noted that the full value of capital is not assessed. The standard formula for assessing the value of capital for most social welfare payments is as follows: the first €20,000 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.
The formula for Carer’s Allowance and Disability Allowance is as follows: the first €50,000 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.
Any proposals to change the means assessment formulas for social assistance schemes would have to be considered in an overall budgetary and policy context.
I trust this clarifies the matter for the Deputy
