Dáil Éireann Debate, Tuesday - 26 July 2022
1189. Deputy Thomas Pringle asked the Minister for Social Protection if the disregard capital increase of €50,000 from €20,000 which was rolled out on 2 June 2022 is for all the social welfare means tested payments assessments; and if she will make a statement on the matter. [39788/22]
View answerIn general, social assistance payments are means-tested. A means test is a way of checking if a claimant has enough financial resources to support themselves and determine what amount of social assistance payment, if any, they may qualify for.
A maximum rate is payable where a person has limited or no means and, generally, tapering applies to the rate payable to those with modest or more substantial means. This is because there is an expectation that those with resources can at least partly contribute towards supporting themselves.
Social 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.
How capital is assessed can vary depending on the nature and purpose of the payment, and various disregards apply across the schemes, reducing the amount of means assessed.
For most social assistance schemes, the first €20,000 of capital is fully disregarded, the next €10,000 assessed at €1 per thousand, the next €10,000 assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
For Disability Allowance and Carer’s Allowance, the first €50,000 of capital is fully disregarded. The Disability Allowance capital disregard was increased to €50,000 in 2007 and I increased the Carer’s Allowance disregard in Budget 2022 to the same level.
To increase the capital disregard to €50,000 for all means tested payments would have significant cost implications and would have to be considered in an overall policy and Budgetary context.
I trust this clarifies the matter for the Deputy
