Dáil Éireann Debate, Thursday - 14 July 2022
517. Deputy Éamon Ó Cuív asked the Minister for Social Protection if her Department has examined the effect of means testing as a barrier to persons either engaging in self-employment or employment or increasing their income from both; if so, the results of this examination; and if she will make a statement on the matter. [34172/22]
View answerSocial welfare legislation provides that, for social assistance schemes, income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her partner, where applicable, is assessable for means assessment purposes. The purpose of the means assessment is to maintain the policy of ensuring that social welfare expenditure is targeted to those who need it most.
All of the claimant’s sources of income are added together and taken into account when deciding whether they qualify for a means-tested payment, or the level at which they are paid. Decisions on means assessments are made by Deciding Officers. If a person is not satisfied with the decision, they may ask for a review of the decision or make an appeal to the Social Welfare Appeals Office.
Elements of the Means Assessment
Cash income that is assessed includes any income from employment or self-employment, income from a social security pension from another country and maintenance payments.
The assessment of income can vary from scheme to scheme depending on the nature and purpose of the scheme. Sometimes a certain amount of income, or income from particular sources, is not taken into account for a particular scheme and these are usually referred to as income disregards.
Employment is the best, and most sustainable, route out of poverty for most people. Therefore, means testing policy aims to achieve a balance between ensuring resources are targeted towards those with the greatest need while supporting people to take up employment opportunities.
When assessing income from employment, the following items are deducted from gross earnings:
- PRSI;
- Union Dues;
- Superannuation or contribution to pension fund;
- In the case of self-employment income, all expenses directly related to self-employment are deducted.
Income disregards vary from scheme to scheme. For example, Disability Allowance claimants can earn up to €140 per week from employment or self-employment without their payment being affected, while weekly earnings between €140 and €350 are assessed at 50%. This income disregard aims to ensure that people with disabilities can participate in work while retaining a proportion of their social welfare payment. As another example, carer's allowance provides for disregards of €350 per week for a single person and €750 for a couple.
I trust this clarifies the position for the Deputy.
