Written answers

Wednesday, 2 May 2012

Department of Social Protection

Social Welfare Code

6:00 pm

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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Question 81: To ask the Minister for Social Protection her plans to change the way means are assessed on social welfare applications from persons with property and second homes in view of the financial burden these properties are on persons; and if she will make a statement on the matter. [22242/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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In assessing means for social assistance payments, account is taken of the income and the value of capital and property of the claimant and their spouse/partner. Social welfare legislation provides that the yearly value of "property owned but not personally used or enjoyed" is assessable for means testing purposes for social assistance payments. Such property includes houses and premises owned by a claimant which may or may not be put to commercial use. However, it does not include property such as the family home or, for example, a premises used by the claimant in carrying out a business.

For assessment purposes, the current market value of the property is established as well as the amount of any outstanding mortgages on that property. The balance (market value less outstanding mortgage) is assessed by reference to a formula. The current market value of a property is the best estimate of what would be achievable if the property was offered for sale. Such an estimate will have regard to reductions in prices over recent years. Where the current market value is less than the outstanding mortgage, no assessment is made. There are no plans to change the assessment of second properties for social assistance schemes. Any changes to the wide range of social protection schemes and services operated by my Department will be considered in a Budgetary context later this year.

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