Dáil Éireann Debate, Tuesday - 16 November 2021
387. Deputy Michael Creed asked the Minister for Social Protection if there is a differentiation in the treatment of capital in which the capital has been accumulated through the compulsory purchase of lands by the State for the purposes of the means test for the State pension (non-contributory); and if she will make a statement on the matter. [55723/21]
Amharc ar fhreagraSocial welfare legislation provides that all income and capital belonging to an applicant (and his or her spouse/partner, where applicable) is assessable for means testing purposes for social assistance schemes, such as the State Pension Non-Contributory (SPNC). This includes capital such as savings, investments, and property (other than the principal family home).
Under the means testing rules applying to the SPNC, the first €20,000 of capital is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand. The SPNC means test also disregards the first €30 of weekly means from any source. This means that a recipient of the SPNC with no other means can hold capital of up to €40,000 and still qualify for the maximum weekly rate of payment.
Certain statutory bodies are empowered to purchase land by means of a compulsory purchase order (CPO). Compulsory purchase usually takes place to allow a public infrastructure project to proceed for the common good. Where a person's property is subject to a compulsory purchase order, they should be compensated based on the market value of their land or property.
Disregarding a potentially large amount of capital such as this, based solely on the fact that it was acquired through a CPO, would run contrary to the general aim of the means test, which is to ensure that persons with reasonable amounts of income or capital are in a position to use it to support themselves without having to rely solely on a means-tested welfare payment.
However, it should be noted that where a person has sold his/her residence and is holding the money pending completion of the purchase of another property, a Deciding Officer may decide not to assess the capital for a temporary period and review subsequently to confirm that the purchase was completed. This exemption can be considered in cases where a person's home has been subject to a CPO, while they are in the process of purchasing another home.
I trust this clarifies the matter for the Deputy.
