Dáil Éireann Debate, Wednesday - 20 September 2023
653. Deputy Neasa Hourigan asked the Minister for Social Protection if she will outline the reasons her Department chooses to means test the disability allowance payment; and if she will make a statement on the matter. [40564/23]
View answerMy Department provides a number of income supports for those unable to work due to illness or disability. These include insurance-based schemes, based on Pay Related Social Insurance (PRSI) contributions, and means-tested social assistance schemes.
The primary disability related social assistance scheme is the Disability Allowance, which is a means-tested payment for people with a specified disability who are aged between 16 and 66. In addition to the means test, in order to be eligible, the disability must be expected to last for at least one year. The allowance is also subject to a medical assessment and a habitual residency requirement.
Means-testing of Disability Allowance is a statutory requirement under social welfare legislation.
In general, social welfare assistance schemes are targeted and not universal and this is possible by way of a means test. The means test plays a critical role in determining if an income need arises as a consequence of a particular contingency - be that illness, caring, unemployment or disability.
Applying a means-test not only ensures that the recipient has an income need but also that scarce resources are targeted. The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves so that social welfare expenditure can be directed towards those who need it most.
By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure. In line with most social assistance payments, deductions permitted for Disability Allowance include PRSI, union dues and pension contributions.
Currently recipients of Disability Allowance can have up to €50,000 in savings and still receive the full rate of payment. This is compared with €20,000 for most social welfare payments.
In addition to this, Disability Allowance recipients may work and earn up to €495.10 per week and still retain a small amount of their payment. The earnings disregard for recipients of Disability Allowance increased by almost 38% over the last three budgets. It is currently set at €165 per week where a person can retain the full amount of their payment; above €165 a taper on earnings applies.
My Department is committed to consulting on proposals to reform long-term disabilities payments. In this regard, I expect to launch a Green Paper in the coming weeks.
I trust that this clarifies the matter for the Deputy.
