John Brassil (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

257. To ask the Minister for Social Protection to review the threshold of savings considered under the State pension (non-contributory) scheme (details supplied); and if he will make a statement on the matter. [18039/16]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 (including capital) owned but not personally used or enjoyed is assessable for means testing purposes for social assistance payments. Such property includes all monies held in financial institutions or otherwise, the market value of shares and 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, savings are assessed by reference to the following, as follows:

Capital - Assessment Formula

It should be noted that for the purposes of the State pension non-contributory, the amounts above are doubled in the case of a couple.

No account is taken of interest or dividend payments received in the means assessment. The assessment formula reflects the fact that there is an expectation that persons with reasonable amounts of capital and property are in a position to use that capital or to realise the value of property to support themselves without having to rely solely on a means tested welfare payment.

If the threshold were to be increased, the people who would benefit would be those who had income or assets of varying levels and, accordingly, such claimants would be treated more favourably than claimants who had fewer or no personal resources. Any changes to the current arrangements would have to be considered in an overall policy and Budgetary context.