Dáil Éireann Debate, Tuesday - 24 May 2016
285. Deputy Mick Wallace asked the Minister for Social Protection if he is considering measures to provide financial assistance to applicants for social welfare payments who are currently required to provide a valuation of any unused land they may have; and if he will make a statement on the matter. [11467/16]
Amharc ar fhreagraIn assessing means for social assistance payments, account is taken of the income and the value of property, including capital, of the claimant and their spouse/partner. Social welfare legislation provides that the yearly value of property (including capital) owned but not personally used or enjoyed is assessable for means testing purposes. However, it does not include property such as the family home a person is personally using or enjoying i.e. residing in or a premises or a farm of land used by the claimant in carrying out a business.
Where the property is not being used to carry on a business or is not being farmed the current market value of the property or land is established (having regard to local property prices) as well as the amount of any outstanding mortgages, if any. The balance (market value less outstanding mortgage) is assessed by reference to a notional formula.
The assessment method involves disregarding an initial amount of capital (€20,000 for most social assistance schemes such as jobseeker’s allowance, farm assist and the state pension non-contributory), and applying an increasing notional weekly value for amounts in excess of the disregarded amount, as outlined.
Social Welfare Capital Means Assessment (excluding Supplementary Welfare Allowance and Disability Allowance*)
|
AMOUNT OF CAPITAL |
WEEKLY MEANS ASSESSED |
|
Up to €20,000 |
Nil |
|
€20,000 - €30,000 |
€1 per each €1,000 |
|
€30,000 - €40,000 |
€2 per each €1,000 |
|
Over €40,000 |
€4 per each €1,000 |
For the purposes of the State pension non-contributory and carer’s allowance the amounts above are doubled in the case of a couple. From 2007, the amount disregarded in the case of disability allowance is €50,000, up from €20,000, and in the case of supplementary welfare allowance is €5,000, up from €520.
This approach reflects the policy of ensuring that those with property and capital of modest amounts receive the most available support, while those with larger amounts of capital contribute, at least partially, towards meeting their needs.
The Programme for Government contains the commitment to review the farm assist scheme, recognising the challenges facing farmers on low incomes. Any changes to the means assessment of unused land in general, and for farm assist recipients in particular, would have to be considered in the overall policy and budgetary context.
