Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 453: To ask the Minister for Social and Family Affairs the reason lump sums payments received as compensation for injuries incurred is treated the same way as savings when dealing with applications for disability allowance. [3588/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The legislation governing means-tests for Disability Allowance and other welfare schemes provides that certain compensation awards are disregarded in the assessment of means. For instance, compensation awards by the Hepatitis C Compensation Tribunal 1997, the Hepatitis C and HIV Compensation Tribunal 2002 or compensation awards by a court of competent jurisdiction to persons who have contracted Hepatitis C or HIV from contaminated blood products, together with subsequent income from the investment of that money, are not assessed as means. Similarly, compensation awards to persons who have a disability caused by Thalidomide together with subsequent income from the investment of that money are disregarded in the means test.

More generally, compensation awards for injuries are treated as capital income. In this regard, the capital disregard in the means test for Disability Allowance was increased from €20,000 to €50,000 in 2007. This measure recognised the need to provide additional supports for people with disabilities on low incomes by addressing the fact that in cases where a compensation award has been made to a client as a result of accident or injury, the assessment of capital received in excess of €20,000 could have resulted in a reduction or loss of payment of Disability Allowance and associated benefits.