Dáil Éireann díospóireacht -
Tuesday, 12 Mar 1996

Vol. 462 No. 8

Written Answers. - Social Welfare Means Test.

Edward Nealon

Ceist:

226 Mr. Nealon asked the Minister for Social Welfare what plans, if any, he has to re-evaluate interest rates in order that they are more in conformity with what is happening on the ground in view of the Government's expectation that low interest rates will continue; his views on whether it is unfair that, in calculating means from investments and savings for social welfare payment purposes, any balance after the first £575 is assessed at ten per cent; his further views on whether it is hard, if not entirely impossible, for people with small savings to receive anything like that kind of interest at the current time; and if he will make a statement on the matter. [5658/96]

Minister for Social Welfare (Proinsias De Rossa)

The means tests used to determine entitlement to all social assistance schemes include an assessment of the value of any capital or investments which the applicant may have. Different methods of assessment are applied in the various social assistance schemes. For example, in the case of unemployment assistance and supplementary welfare allowance, the first £400 is assessed at 5 per cent and capital in excess of this amount is assessed at 10 per cent. In the case of old age pension, an initial disregard of £200 is allowed, the next £375 is assessed at 5 per cent and the balance is assessed at 10 per cent while recipients of lone parent's allowance and widow's (noncontributory) pension have an initial disregard of £200 plus £100 in respect of each dependent child and the balance is assessed at 5 per cent.

I intend, over time, to standardise the method of assessing capital across the various social assistance schemes so as to improve the equity of the system.

I have commenced this process in the Social Welfare Bill, 1996 which provides for a new method of assessing capital in the case of the new disability allowance which will replace disabled person's maintenance allowance currently administered by the health boards and the new one-parent family payment. The Bill provides that the first £2,000 of capital will be disregarded, the next £20,000 will be assessed at 7.5 per cent and capital in excess of £22,000 will be assessed at 15 per cent.

It is my intention to extend these provisions to all other social assistance schemes over time. In view of the large number of cases involved, this will have significant administrative implications and can only be achieved on a phased basis.

Ned O'Keeffe

Ceist:

227 Mr. E. O'Keeffe asked the Minister for Social Welfare what plans, if any, he has to sanction the payment of carer's allowance without a means test to the carers of patients suffering from Alzheimer's disease. [5702/96]

Minister for Social Welfare (Proinsias De Rossa)

Carer's allowance is a means-tested payment for people who live with and provide full-time care to elderly or incapacitated people. Once the need for full-time care and attention is established the nature of the incapacity of the person being cared for does not affect the payment of the allowance. To pay the allowance without a means test in the case of one particular group could not in my view be justified and I have no plans at the present time to remove the means test for recipients of the scheme.