Dáil Éireann Debate, Wednesday - 24 November 2021
131. Deputy Sorca Clarke asked the Minister for Social Protection if she will consider removing the means tests for the blind pension and the disability allowance; and if she will make a statement on the matter. [58031/21]
Amharc ar fhreagraAt the end of September 2021 there were almost 156,000 persons in receipt of means tested disability payments from my Department, comprising 154,563 persons on Disability Allowance (DA) and 1,047 in receipt of the Blind Pension (BP).
The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves, so that social welfare expenditure can be directed towards those who need it most.
In the means test, cash income that is assessed includes any income from employment or self-employment (and spouse/partner, if applicable), income from a social security pension from another country and maintenance payments.
Capital assessed as part of the means test includes all monies held in financial institutions or otherwise, the market value of shares, as well as houses and premises owned by a claimant which may or may not be put to commercial use. The family home is never assessed as part of the means test, regardless of who is the legal owner.
Both DA and BP are structured to support recipients to avail of opportunities to pursue their own employment ambitions, be that self-employment or insurable employment.
When an individual commences employment, they can avail of an income disregard of €140 per week. In addition, a 50% taper on earnings between €140 and €350 is also applied, i.e., 50% of earnings in this band are disregarded for the purpose of the means test. Earnings above €350 are assessed at 100% i.e. for every euro earned above €350 a euro reduction is applied.
The conditions attached to payment of Disability Allowance and Blind Pension are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency – be that illness, disability, unemployment or caring.
It should be noted that measures introduced, in Budget 2022, will see increases applied related to the above, as follows:
1. An increase in the earnings threshold above which means is fully assessed, of €25 per week (from €350 to €375) for both the Disability Allowance and Blind Pension.
2. An increase in the general weekly means disregard entry point for Disability Allowance from €2.50 to 7.60. Currently the first €2.50 of weekly means is disregarded for Disability Allowance. The effect of this measure will be to increase the weekly rate of payment by up to €5.10 per week for DA recipients who have means. This increase also has the effect of bringing the general weekly disregard for DA in line with that of BP. These measures take effect from June 2022.
3. Extension of the of the €20,000 PhD scholarship income disregard (introduced earlier in the year for recipients if DA) in the means test, to recipients of the Blind Pension. This measure takes effect from January 2022.
The Department regularly reviews its supports and payments schemes to ensure that they continue to meet their objectives, while any proposed changes have to be considered in an overall policy and budgetary context.
