Mattie McGrath (Tipperary, Independent)
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692. To ask the Minister for Social Protection the reason he declined an application by a person (details supplied) under the disability allowance scheme; the reason moneys that were awarded to provide for the future care for the person following damages were assessed against the person when certain award damages are exempt; if such moneys should be considered as weekly means considering that they are to provide for the persons future care; and if he will consider the legislation surrounding the awarding of damages and their impact on a person's disability allowance; and if he will make a statement on the matter. [24642/16]

Finian McGrath (Dublin Bay North, Independent)
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In the case of means-tested payments from my department, such as disability allowance (DA), applicants are assessed with any cash income, property other than the home, and investments. Within all means-tested schemes, there is an initial amount of capital that is disregarded for means assessment purposes. For most schemes this disregard is €20,000 but, in the case of DA, it is €50,000. This means that a DA applicant with €50,000 in savings (and no other means) can be assessed as having nil means and, as a result, receive the maximum rate of DA.

Social welfare legislation provides for the disregard of certain compensation awards when assessing the means of a person for social assistance schemes, including DA. The disregards for social welfare means assessment purposes include all income derived from compensation awarded by the Hepatitis C and HIV Compensation Tribunal, by the Residential Institutions Redress Board and in relation to disability caused by thalidomide. Any payment made by the Residential Institutions Statutory Fund Board is similarly disregarded. In addition, ex gratia payments made to women who were admitted to and worked in the Magdalen Laundries or through the Symphysiotomy Payment Scheme are also disregarded in social welfare means assessments. All other compensation or court awards which are not provided for in social welfare legislation are assessed in the normal manner.

The statutory formula for assessing means from capital for DA is as follows:

I trust that this clarifies the matter for the Deputy.