Séamus Brennan (Dublin South, Fianna Fail)

I recently reviewed the current arrangements for the assessment of capital for social assistance purposes and am introducing significant improvements by way of the Social Welfare and Pensions Bill being debated in this House. In assessing means for social assistance purposes, account is taken of cash income a person may have together with the value of capital and property except the home. Capital may include stocks and shares of every description, savings certificates, bonds, national instalment savings, special savings investment accounts, and money invested in a bank, building society or other type of financial institution. The first €12,694.38 of capital is disregarded and the balance is assessed.

Last October I requested my Department to undertake a review of the current arrangements for the assessment of capital, particularly in so far as they apply to SSIAs, with a view to bringing forward proposals in the budget for 2005. On budget day, I was pleased to announce that the capital disregarded for means test purposes for all schemes except supplementary welfare allowance would be increased to €20,000, an increase of over €7,300. The enhanced disregard applies to all capital regardless of where it is held, be it in an SSIA, a credit union account, with An Post or other account with a bank or other financial institution. The new arrangements will mean that a single non-contributory pensioner with no other means can have capital of up to €28,000 and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple. The improvements will come into effect in June and are designed to ensure that social welfare means-testing arrangements do not act as a disincentive to claimants to become savers or penalise those who have been regular savers.

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