Dáil Éireann Debate, Tuesday - 21 March 2023
860. Deputy Gary Gannon asked the Minister for Social Protection how reviews are carried out for those in receipt of disability allowance or blind pension who are self-employed (details supplied); and if she will make a statement on the matter. [13895/23]
View answerDisability Allowance is a weekly allowance paid to people with a specified disability who are aged 16 or over and under the age of 66. This disability must be expected to last for at least one year and the allowance is subject to a medical assessment, a means test and Habitual Residency conditions.
Disability Allowance and Blind Pension have been designed to support recipients pursuing employment opportunities, be that self-employment or insurable employment. When a person is in employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 are also disregarded for the purpose of the means test.
If a person in receipt of Disability Allowance or Blind Pension is self-employed, their income is taken to be their gross profit, less permissible work-related expenses, but not drawings. Where the person has taken drawings from their business which are greater than the level of income thus calculated, the drawings are assessed as cash income. All expenses directly related to self-employment can be offset against income from self-employment. Expenses vary with the nature and extent of the self-employment but may include materials, depreciation of machinery or equipment, telephone, lighting and heating (for business and not domestic use) and other costs associated with running a business.
Income is assessed on an annual basis, and then divided by 52 to ascertain a person’s weekly means. The means assessment is intended to reflect the income the person may reasonably be expected to receive during the coming 12 months. Where this is not ascertainable, the income for the last 12 months can be taken as a guide, allowing for any factors which it is known will vary. Assessing a person’s income in this manner takes account of the fact that some people’s income is irregular, and that they will earn more during some periods than others.
I trust this clarifies the matter for the deputy.
