Mary Upton (Dublin South Central, Labour)
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Question 138: To ask the Minister for Social and Family Affairs if she is satisfied that the current means-testing for self-employed people seeking jobseeker's allowance is operating to standards that are fair and equitable. [34392/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Self-employed workers who do not qualify for an insurance-based benefit may apply for the means-tested Jobseeker's Allowance if their business ceases or if they are on low income as a result of a downturn in the demand for their services. Generally, in assessing the means of a self-employed person, a Social Welfare Inspector will take into account the level of earnings in the preceding 12 months to determine their expected income in the following year. However, with the general downturn in the economy at present, it is accepted that earnings in the previous 12 months may not be representative of expected earnings in the coming year. The Social Welfare Inspector will take account of this fact in projecting future earnings.

There are no immediate plans to review the criteria for Jobseekers Allowance. Any such measure would have to be considered within a budgetary context.

Jim O'Keeffe (Cork South West, Fine Gael)
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Question 141: To ask the Minister for Social and Family Affairs if her attention has been drawn to the difficulties which have arisen for old age pensioners who save part of their weekly pension and as a consequence accumulate savings in excess of the means test limit thereby giving rise to claims by her Department for reductions in pensions or clawback by the State; and her proposals to deal with this situation with a view to encouraging rather than discouraging savings by pensioners. [34378/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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In assessing means for social assistance purposes, including the State pension non-contributory, 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.

The source of any capital held by a pensioner can vary. For example, it can include savings from income while formerly working, savings derived from the sale of property or other assets, savings from occupational or social welfare pension, gifts, inheritances, accumulated interest or dividends or a combination of these. Therefore, in determining a pensioner's means, it would not be possible or practical to distinguish savings derived from particular sources. For this reason, savings from all sources are taken into account in assessing means.

It is recognised that some pensioners may wish to save some element of their non-contributory pension or may have accumulated savings in the past. Accordingly, the current assessment arrangements provide for a disregard of an initial amount of capital. In the case of a single pensioner, the first €20,000 of capital is disregarded and the balance is assessed by reference to a formula. In the case of a couple, the amount disregarded is €40,000. In addition, the first €30 per week of weekly means from all sources including capital does not affect the rate of pension payable.

Accordingly, a single pensioner who has no other means can have capital of up to €40,000 and qualify for a pension at the maximum rate. Where the savings exceed this amount but are less than €94,000, a reduced rate of pension is payable on a sliding scale. These amounts are double in the case of a couple at €80,000 and €188,000, respectively. These means testing arrangements seek to strike a balance between the need to focus scarce Exchequer resources on those who need them most while also encouraging people to save. Any change to the current capital assessment arrangements would have to be considered in a Budgetary context and in the light of available resources.