Jim Daly (Cork South West, Fine Gael)
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To ask the Minister for Social Protection the reason a weekly payment from a payment protection insurance policy to a person out of work due to ill health does not qualify for income disregard noting if the person was well enough to work and earned the exact same amount from employment it would qualify for income disregard; and if she will make a statement on the matter. [41946/12]

Joan Burton (Dublin West, Labour)
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There are a number of means tested, social assistance scheme operated by my Department. For means test purposes, account is taken of the income, including any income from employment, and the assets of both the claimant and his or her spouse/partner. The manner in which income of various types is taken into account is designed to encourage people to take up work.

Where a claimant or his or her spouse or partner is in employment, a range of earnings disregards and tapering assessment arrangements apply to social assistance payments such as disability allowance, jobseeker’s allowance and one-parent family payment. For example, in the case of jobseeker’s allowance, farm assist and disability allowance a disregard of €20 per day is applied to the earnings for each day worked subject to a to a maximum of €60 per week and the balance is assessed at 60% where a person’s means are derived from their spouse / partner’s insurable employment. In the case of disability allowance, a disregard of €120 per week applies and earnings between €120 and €350 are assessed at 50%. The purpose of these disregards is to encourage people to enter or re-enter the workforce.

Other forms of income, e.g. income from an occupational pension are assessed in full. This includes income from income continuance/illness protection plans where the payment is made directly to the former worker.