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Social Welfare Payments

Dáil Éireann Debate, Thursday - 14 July 2022

Thursday, 14 July 2022

Questions (89)

Éamon Ó Cuív

Question:

89. Deputy Éamon Ó Cuív asked the Minister for Social Protection the work that has been carried out in the past year to review the terms of the various means tested schemes to make them more equitable and to increase the incentive to work for persons in receipt of means tested social welfare payments; and if she will make a statement on the matter. [38516/22]

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Oral answers (7 contributions)

As the Minister will be aware, I have raised time and again the issue of means testing. What work has been done in the past year to review the various means-tested scheme to make them more equitable and to increase the incentive to work? We have discussed this matter a number of times and I believe we need urgent and radical reform here.

My Department has carried out extensive work on the policies surrounding means-tested schemes over the past year and I have also made commitments in regard to further reviews. Means tests are kept under regular review and a number of significant changes have been made in recent years. In particular, I have introduced a number of changes to means testing that provide for higher income disregards. These disregards ensure that, where people are in receipt of a social assistance payment and are working, a certain level of income from that work is not assessed in the means test. On foot of the commitment in the programme for Government and the rural development policy 2021-25, my Department recently reviewed the means assessment disregards for the farm assist. The report is available on the Government's website. One of the key recommendations of the report was to provide for an extensive expansion to the list of agri-environmental schemes that qualify for a disregard, a policy I introduced with effect from June 2022.

In addition, I have agreed to carry out a review of how income from land leased by farmers is treated in the means assessments for the State non-contributory pension and the farm assist scheme. I have also introduced several measures that aim to encourage and support people with disabilities to pursue their employment goals, including a higher earnings disregard for the disability allowance and the blind pension. Moreover, I have significantly increased the income disregard for the carer's allowance. This enables more carers with modest incomes to become eligible for the scheme and allows carers and their families to earn more from employment while retaining their carer's payment.

My Department will continue to monitor and review policies for all social welfare payments, including means assessments. The Deputy and I have discussed this matter and I have been listening to him. While I have made changes, I acknowledge he has more ideas for further changes. As always, I would be happy to discuss them with him.

One of those changes related to people who are severely disabled from birth. If the parents die and leave their estate to their children, the family home might be sold. If they leave, say, €200,000 to each of the children, in the case of the person in receipt of the disability allowance, what will happen once he or she receives that is he or she will lose the entire disability allowance. I do not think that is equitable, fair or just. The siblings who do not have a disability, on the other hand, will get their money totally free of tax and there will be no penalty.

There is also the example of a couple with a dependent adult in a one-income family. In one case, they might put the money into joint bank accounts, and in another, they might put it only into the income-earner's bank account. In the first case, they will be means-tested on the increase for the qualified adult. There are any number of examples that are totally anomalous and the system needs to be reformed.

As I said, the Deputy and I have discussed these issues. He raised an example of somebody on the disability allowance whose elderly parents have been living frugally in order that they can leave an asset behind, when they pass on, to their disabled child. They may then find that the asset, or their savings as the case may be, has an impact. I take the Deputy's point and, as I said, I have made some improvements. In the context of the budget, I will consider the list of proposals he gave me because there are anomalies and we would like to try to help people, which is what the Department of Social Protection is here to do. It seeks to support people and target those who are vulnerable or on low incomes. Many changes have been made but I am happy to consider more if there are suggestions.

In regard to the incentive to work, if a self-employed person is on the jobseeker's allowance, 100% of his or her income from self-employment will be deducted from the jobseeker's allowance. Another situation I find totally anomalous is that if somebody is receiving a non-contributory pension, he or she can earn €200 a week and receive the full pension, but if he or she gets that from self-employment, it will be deducted from the pension. There is no logic for having such a difference between self-employment in farming or fishing and PAYE employment.

I reiterate the Department has carried out numerous reviews of policies surrounding means-tested schemes over the past year and the Deputy has given me a list of suggestions. In line with a commitment in the programme for Government and the rural development policy, a review of the means assessment disregards for the farm assist has been completed and a key recommendation from the review was to extend the list of agri-environmental schemes that qualify for a disregard. We have made some changes and will continue to look at these issues and do whatever we can to assist.

Deputy Aindrias Moynihan has time to introduce one final question.

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