Dáil Éireann Debate, Tuesday - 9 April 2024
758. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection when the earnings disregard for disability allowance was last increased; and if she will make a statement on the matter. [14263/24]
View answer759. Deputy Donnchadh Ó Laoghaire asked the Minister for Social Protection when the capital disregard for disability allowance was last increased; and if she will make a statement on the matter. [14264/24]
View answerI propose to take Questions Nos. 758 and 759 together.
My Department provides a suite of income supports for those who are unable to work due to an illness or disability. These include contributory payments based on PRSI contributions, such as Illness Benefit and Invalidity Pension, and non-contributory payments based on a means test, such as Disability Allowance.
Disability Allowance is a payment for people who are aged between 16 and 66 with an injury, disease or disability that has continued, or may be expected to continue, for at least one year and, as a result of this disability, the person is substantially restricted in undertaking work that would otherwise be suitable. The allowance is subject to a medical assessment, a means test and a habitual residency requirement.
The Disability Allowance capital disregard was increased to €50,000 in 2007. This disregard is one of the highest among social welfare schemes. This means that the first €50,000 of capital or savings is fully disregarded. The next €10,000 is assessed at €1 per thousand, the following €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
An earnings disregard enables those on a scheme to earn a certain amount of money without it having a negative impact on their means tested payment. The earnings disregard for recipients of Disability Allowance is €165 per week, having been increased in Budgets 2021 and 2023. In addition, 50% of earnings between €165 and €375 is also disregarded for the purpose of the means test. A person can now earn a maximum of €505.10 per week and still keep a portion of their Disability Allowance payment.
Any proposals to further change the earnings or the capital disregard for Disability Allowance would have to be considered in an overall budgetary context.
I trust this clarifies the matter for the Deputy.
