Dáil Éireann Debate, Tuesday - 7 March 2023
437. Deputy Michael Healy-Rae asked the Minister for Social Protection if she will remedy an anomaly concerning the means tested payment for carer's allowance (details supplied); and if she will make a statement on the matter. [11133/23]
Amharc ar fhreagraThe system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that the recipient has a verifiable income need and that resources are targeted to those who need them most.
Social welfare legislation provides that, for social assistance schemes, income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her partner, where applicable, is assessable for means assessment purposes.
How capital is assessed can vary depending on the nature and purpose of the payment, and various disregards apply across the schemes, reducing the amount of means assessed.
For most social assistance schemes, the first €20,000 of capital is fully disregarded, the next €10,000 assessed at €1 per thousand, the next €10,000 assessed at €2 per thousand, with the remainder assessed at €4 per thousand.
In the case of Carer’s Allowance and Disability Allowance the first €50,000 is fully disregarded.
It should be noted therefore that Carer’s Allowance has the most generous income threshold in the social welfare system.
The assessment of capital is in keeping with the overarching aim of the system of means testing, which is to ensure that, insofar as is reasonable, people with higher amounts of income or capital use their income or realise the value of their capital to support themselves, without relying solely on a social assistance payment.
Any changes to the assessment of capital as part of the means assessment for Carer's Allowance would have to be considered in an overall budgetary context.
