Richard Bruton (Dublin North Central, Fine Gael)
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Question 479: To ask the Minister for Social and Family Affairs the value of the income limit on secondary sources of income in order to qualify for the fuel scheme in each of the past 10 years. [35663/06]

Séamus Brennan (Dublin South, Fianna Fail)
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In 2006, in the case of contributory pensions which are not means tested, a person may have a combined household income of up to €51 per week over and above the maximum rate of state pension (contributory), or savings/investments of up to €46,000, and still qualify for fuel allowance. This additional income amount was increased to €51 per week with effect from 1 June 2005. Prior to that, it was €38.10 per week from September 1999, having previously been set at €19.05 per week. The overall fuel allowance income limits increase each season in line with the increases in the rate of the state pension (contributory).

Actual income from investments and money in savings accounts is not counted for means assessment purposes. Instead all cash values of investments and property, all money in savings accounts and cash-in-hand are added together and this capital is assessed as follows:

the first €20,000 of capital is disregarded;

capital between €20,000 and €30,000 is assessed on the basis of €1 weekly means for each €1,000 of capital;

capital between €30,000 and €40,000 is assessed on the basis of €2 weekly means for each €1,000 of capital; and

capital above €40,000 is assessed on the basis of €4 weekly means for each €1,000 of capital.

Income limits on secondary sources of income in order to qualify for fuel allowance from 1997 are set out in column B in the following tabular statement attached. The overall income limit is also set out in the statement.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 480: To ask the Minister for Social and Family Affairs his views on introducing a higher savings threshold for persons on a disability allowance whose disability hampers their ability to live independently in order that parents could, for example by way of bequest, make financial provision for such people without undermining their eligibility for continuing social welfare payments; and if he will make a statement on the matter. [35719/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Capital owned by an applicant for a social assistance payment is assessed, with a disregard of the first €20,000 of the amount held. Any change to this disregard would have to be considered in the context of the budget.

In the case of inheritance, some persons making a will give consideration to the creation of a discretionary trust for people with a disability and this has somewhat different implications for the assessment of means.

A discretionary trust may be created by deed during a parent's (or other relative's) lifetime when a lump sum or windfall is to be invested, or it can be established in a will along with the naming of trustees. Funds within a discretionary trust are administered at the discretion of the trustees and whether they are assessable as means will depend on how they are administered.

Where a discretionary trust fund is set up for a recipient of a social welfare means-tested payment, a life interest in such a fund would mean that any cash income that s/he may reasonably be expected to receive from it during a particular year is assessable as means. Accordingly, periodic payments received from the fund are regarded as cash income and assessed as means.

However, funds used to purchase items of capital expenditure or services on behalf of the beneficiary do not constitute means e.g. money spent on renovating the house in which the claimant resides, the purchase of a car or holiday or assistive technology.

Similarly, occasional sums withdrawn or received by the claimant for particular purposes are not normally regarded as cash income for means purposes.

Transfers of capital to the beneficiary are assessable as capital. Unspent balances held by the claimant (for example in the claimant's own bank account) are assessable under the rules governing capital.

In relation to secondary benefits, the free travel pass and any other extra benefit entitlements will remain with the person as long as they are in receipt of the relevant social welfare payment, whether at full or reduced rate.