John Deasy (Waterford, Fine Gael)
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Question 559: To ask the Minister for Social and Family Affairs if he will examine the means test applicable to non-contributory social welfare payments which shows a much higher rate of return on shares, investments and bank deposits than is the case in reality; when the present means test was introduced; the basis for the calculation at that time; and if he will make a statement on the matter. [34407/07]

Martin Cullen (Waterford, Fianna Fail)
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In assessing means for social assistance purposes account is taken of any cash income the person may have, together with the value of capital and property (except the home). Capital may include the following:

Stocks and shares of every description, which are assessed according to their current market value.

Savings certificates , bonds, national instalment savings, which are assessed according to their current market value.

Money invested in a bank, building society etc.

For the purposes of social assistance schemes, an initial amount of capital has is disregarded for means test purposes. For example, in the case of the State Pension Non-Contributory (formerly the Old Age Pension), this amount was increased from £200 to £2,000 in 1997 and then was substantially increased to £10,000 in October 2000. It was then further increased to €20,000 in June 2005.

The balance of any capital owned is assessed as follows:

The next €10,000 is assessed with a weekly value of €1 per €1,000

The next €10,000 is assessed with a weekly value of €2 per €1,000

The remainder is assessed with a weekly value of €4 per €1,000

The new capital assessment arrangements introduced in 2005, combined with other means disregard improvements introduced in 2006 and 2007 for the State Pension Non-Contributory, mean that a single non-contributory pensioner, with no other means, can have capital of up to €40,000 and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple.

These current assessment arrangements were not designed to reflect current or past yields from deposit income, shares or other investments. It should be noted that the current assessment arrangements also apply in relation to the weekly value of other property such a property which is being let or is capable of being let.

The current system continues with the policy of ensuring that those with relatively modest amounts of capital receive the greater share of available support, while the small proportion of people with large amounts of capital should avail of it to contribute, at least partially, towards meeting their needs. There are no plans, at present, to change the current arrangements.