Disability Allowance and Blind Pension are the primary means tested social assistance schemes, which are also subject to a number of other conditions, including a medical assessment and habitual residency requirements.
It is important to note that within the schemes a number of disregards apply, for the purpose of the means test. These include:
1. Both schemes are structured to support recipients to pursue employment opportunities, be that self-employment or insurable employment. In the means test, both schemes have an income disregard of €140 per week. In addition, 50% of earnings between €140 and €375 are also disregarded for the purpose of the means test.
2. If a customer in receipt of Disability Allowance or the Blind Pension receives income/a grant for a piece of work, the income would be assessed, based on the number of weeks allocated for the work and taking into account the income disregards that apply for self-employment.
3. Capital disregards also apply for both schemes
4. In self-employment cases, it is important to note that income is taken to be the gross profit less allowable work-related expenses (but not drawings). Expenses directly related to self-employment can be offset against income and while, there is no exhaustive list of all expenses allowed, since expenses vary with the nature and extent of the self-employment. The following are the main allowable expenses in most instances:
- Materials (supplies costs)
- Motor running costs (portion applicable to business)
- Depreciation of machinery or equipment
- Insurance relating to the business
- Telephone (portion applicable to business)
- Lighting and Heating (for business and not domestic use)
- Advertising
- Bank Charges
- Stationery
- Van Leasing
- Labour Costs
- Pension plan
- Any other costs associated with running the business.-Class S PRSI contributions
In relation to the type of occupation/sector a person is engaged in, the above supports are available on an equal basis i.e. the same level of support is available to all persons who are self-employed (while in receipt of a payment under both schemes) regardless of the sector they work in.
Separately, the Department also seeks to support persons in receipt of the Disability Allowance and the Blind Pension to pursue educational or training opportunities and as a result, a number of disregards are in place. These include:
1. Where a person is granted a bursary, stipend or scholarship towards completing a PhD. This is subject to an annual limit of €20,000 (i.e., if a recipient gets more than one bursary, the combination cannot exceed €20,000) and is available for a maximum of four years.
2. The maintenance portion of a SUSI Higher Education Maintenance Grant.
3. Any allowance under the Home Tuition Scheme administered by the Department of Education;
4. 1916 Bursary Fund payments administered by the Department of Further and Higher Education, Research, Innovation and Science;
5. Any amount of a U-varsity Higher Educational Scholarships for Adult Learners up to a maximum of €7,000 per annum;
6. Any payments of a Special Transport Grant made by the Minister for Education under the School Transport Scheme for Children with Special Educational Needs;
7. Any amount of training allowance received for participation in a rehabilitation training course approved by the Minister for Health;
The Department also supports social welfare recipients to avail of education and training opportunities through its Back to Education scheme, as well as by referrals to further education and training opportunities through its Intreo service.
My Department regularly reviews its supports and payments schemes, to ensure that they continue to meet their objectives, while any proposed changes have to be considered in an overall policy and budgetary context.
I trust that this clarifies the issue for the Deputy.
