Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I thank the Senator for raising this important issue. She mentioned carers, who provide phenomenal work for society and, more particularly, for their families and loved ones. I will give some background. I am going to read from the conclusion of my notes and work backwards. As the Senator has highlighted, the Minister for Social Protection, Deputy Humphreys, has asked her officials to examine the various elements of means tests in place across schemes in the Department, to review the situation on a holistic basis and to provide a report later this year. I expect the report to be available by the end of 2023. The Senator will appreciate it is a complex piece of work. It is expected to be completed in the fourth quarter of this year.

I am obviously taking this matter on the behalf of the Minister, Deputy Humphreys. As the Senator will be aware, applicants for social assistance payments are means tested in the main. Some are not but in the main, they are means tested. A means test is a way of checking if a claimant has enough financial resources to support themselves and determine what amount of social assistance payment, if any, they may qualify for. The means test allows us to target resources to those who need them most.

A maximum rate is payable where a person has limited or no means and tapering applies to the rate payable to those with modest or more substantial means. This is because there is an expectation that those with resources can at least partly contribute towards supporting themselves.

Means tests in the Department of Social Protection are kept under regular review and a number of significant changes have been made in recent years. In particular, a number of changes to means testing have been introduced, including providing for higher income disregards. A comprehensive and substantive review is currently under way.

Employment is the best way out of poverty for most people. Therefore, means tests aim to achieve a balance between ensuring resources are targeted towards those with the greatest need while supporting people to take up employment opportunities. There are categories of people, including carers, who have unique situations. That is something we must acknowledge.

On foot of the commitment in the programme for Government and in the Rural Development Policy 2021-2025, the Department of Social Protection reviewed the means assessment disregards for farm assist. One of the key recommendations of the report was to provide for an extensive expansion to the list of agri-environmental schemes that qualify for a disregard, a policy which was introduced with effect from June last year.

As part of budget 2023, the Minister, Deputy Humphreys, increased the disregard from these agri-environmental schemes from €2,540 to €5,000. Several measures which aim to encourage and support people with disabilities to pursue their employment goals were also introduced. Those included a higher earnings disregard for disability allowance and blind pension. Important changes in the means test for fuel allowance which significantly broaden eligibility for the scheme were also implemented this year.

Over many years, the means tests of schemes have diverged and subtle differences have been introduced across different schemes. As a result, the means area is complex and can, at times, be hard to communicate.

I want to deal with the specific issue raised by the Senator. For most social assistance schemes, the first €20,000 of capital is fully disregarded. The next €10,000 is assessed at €1 per €1,000. The next €10,000 is assessed at €2 per €1,000, with the remainder assessed at €4 per €10,000. For disability allowance and carer's allowance, the first €50,000 of capital is fully disregarded. The capital disregard for disability allowance was increased to €50,000 in 2007. The Minister, Deputy Humphreys, increased the carer's allowance disregard in 2022. The points raised by the Senator are very important. The substantive and comprehensive review she noted is now taking place. We expect it to be fully completed by the officials in the Department of Social Protection by the fourth quarter of this year.