Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter. The system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether 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 at those who need them most. The means test takes account of the income that a person or couple has in terms of cash, property other than the family home, and capital.

Disability allowance is unique in the social welfare system, as the first €50,000 of capital - savings, shares or property - is fully disregarded in the capital means test. This compares with €20,000 for most other social assistance schemes. After the first €50,000 of capital is disregarded, the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand and the remainder is assessed at €4 per thousand. The disregard results in approximately 98% of people on disability allowance with capital means having no capital actually assessed as means.

People receiving disability allowance may also be eligible for secondary benefits such as free travel, fuel allowance, the household benefits package, the living alone allowance and the telephone support allowance. In addition, disability allowance recipients may also work and earn up to €120 per week without their payments being affected.

In addition, disability allowance recipients may also work and earn up to €210 per week without their payment being affected. Any proposals to change the capital means assessment for disability allowance would have to be considered in the overall budgetary context.

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