Dáil Éireann Debate, Wednesday - 28 April 2021
655. Deputy Willie O'Dea asked the Minister for Social Protection the reason a person (details supplied) was only granted a reduced carer’s allowance on means grounds as a result of a court settlement payment to their spouse; if consideration will be given to changing the way means from capital are calculated in view of the move towards negative interest rates; and if she will make a statement on the matter. [21687/21]
Amharc ar fhreagraThe Department operates a range of means-tested social assistance payments. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse / partner, if applicable) applying for the relevant scheme. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares and other investments.
Social welfare legislation provides for the disregard of certain compensation awards when assessing the means of a person. These disregards include, for example, all income derived from payments awarded by the Hepatitis C and HIV Compensation Tribunal, the Residential Institutions Redress Board and payments made in relation to disability caused by Thalidomide.
All compensation or court awards which are not specifically provided for in social welfare legislation are assessed in the normal manner. However, most social assistance schemes, such as Carer's Allowance, have a capital disregard of €20,000, with the next €10,000 assessed at €1 per thousand, the next €10,000 assessed at €2 per thousand, and the remainder assessed at €4 per thousand. In the case of Disability Allowance, the first €50,000 of capital is disregarded.
The capital assessment formula is not designed to reflect interest or annuity rates available to investors and no account is taken of interest or dividend payments received in the means assessment.
Any changes to the means assessment of social assistance schemes would have to be considered in the overall policy and budgetary context. I do appreciate the difficulties arising in cases of the type raised by the Deputy, and I have asked my officials to consider the potential for addressing the issue in the context of Budget 2022.
