Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 362: To ask the Minister for Social and Family Affairs the policy in place regarding the decision on the types of compensation payments which are disregarded in the means test for the disability allowance; the reason not all compensation payments are treated the same; and if she will make a statement on the matter. [37066/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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In assessing means for social assistance purposes, including disability allowance, account is taken of any cash income the person may have, together with the value of capital and property (except the home). In general, capital acquired as a consequence of a compensation award is assessed in the same manner as capital derived from other sources e.g. through saving or by way of inheritance.

However, there are a limited number of exceptions to this rule. The income from capital is not assessed for the purposes of all social assistance schemes, including disability allowance, where it was awarded as compensation:

(a) by the relevant compensation tribunals or by a court of competent jurisdiction to compensate certain persons who have contracted Hepatitis C or Human Immunodeficiency Virus within the State from the use of Human Immunoglobulin — Anti-D, whole blood or other blood products,

(b) by the Residential Institutions Redress Board;

(c) to persons who have disabilities caused by Thalidomide, or

(d) under the provisions of the Health (Repayment Scheme) Act 2006 to a relevant person within the meaning of that Act.

These limited exceptions were introduced over the years in recognition of the unique background to these awards and to ensure that social assistance recipients did not experience a potential reduction in entitlement as a result of receiving such an award.

For the purposes of social assistance schemes, an initial amount of capital is disregarded for means test purposes. This was increased from €12,697 to €20,000 in 2005. With effect from June 2007, this was further increased to €50,000 for disability allowance purposes only. The current arrangements mean that a single recipient of Disability Allowance, with no other means, can have capital of up to €52,999 and still qualify for a payment at the maximum rate while a reduced rate can be payable where capital of up to €81,999 is owned. Any further changes to the current capital assessment arrangements would fall to be considered in a Budgetary context.