Catherine Murphy (Kildare North, Social Democrats)
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235. To ask the Minister for Social Protection his views on the hardship caused by the means assessments conducted on social protection payments whereby part of a person's income is derived from payments received from non-European monetary union, EMU, states, in particular, the UK; if he has updated the rate of conversion to reflect the decline in the value of sterling; the current exchange rate used in assessing means as provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers; and if he will make a statement on the matter. [33766/16]

Catherine Murphy (Kildare North, Social Democrats)
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236. To ask the Minister for Social Protection if the request for a review and the processing backlogs will impact on the quarterly average sterling value used, in view of the fact that the position has changed rapidly in the past two quarters; the method by which he manages the internal process; if he applies the sterling value at the date of receipt or at the date of processing in case of an increase in review requests as sterling continues to decrease in value against the euro (details supplied); and if he will make a statement on the matter. [33768/16]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 235 and 236 together.

Social Assistance payments act as a safety net for people who have insufficient income and who do not qualify for a contributory payment. The use of a means test is to ensure that scarce resources are directed to those in greatest need.

Payments from the United Kingdom (UK) are assessed as income under current legislation. In assessing means derived from payments received from non-European Monetary Union (EMU) States, the Department uses the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers. The exchange rates for converting sterling and other non EMU currencies are published quarterly in the Official Journal of the European Union. The Department obtains this rate at the beginning of each quarter and uses it in all conversions during the course of that quarter irrespective of whether the value of the currency concerned rises or falls in that period. The conversion rates published in 2016, which are reflective of the changes in the value of sterling, are Q1: 1.36450; Q2: 1.32523; Q3: 1.26216; Q4: 1.18898.

In the case of a new claim, when calculating the value of a sterling payment, the conversion rate used is that applicable to the quarter in which the effective date of the claim falls.

It is open to any person in receipt of a social assistance payment to request that his/her entitlement be reviewed if they wish. It is important to note, however, that any such review will involve a full reassessment of all of the customer’s means to ensure that the person continues to receive the correct payment in line with their overall entitlement and such reviews cannot of their nature just focus on the income derived from the UK. When conducting such a review, the conversion rate used is that applicable to the date of last increase in the sterling payment of the UK State Pension or the rate applicable in a subsequent quarter if that rate has been published by the date of the decision and is more favourable to the customer.

Following the outcome of the UK referendum, negotiations on the UK’s future relationship with the EU will take time. In the interim, it is important to stress that all payments made by the Department of Social Protection, including those to recipients who are resident in Britain and Northern Ireland, and payments from the UK to residents in Ireland, will continue to be paid.

I hope this clarifies the matter for the Deputy.

Pearse Doherty (Donegal, Sinn Fein)
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237. To ask the Minister for Social Protection the stage at which a person must make a disclosure in respect of property which is expected to be inherited but which is currently under probate administration for the purposes of calculating the means of a person; and if he will make a statement on the matter. [33770/16]

Leo Varadkar (Dublin West, Fine Gael)
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In assessing means for social assistance payments, account is taken of the income and the value of property, including capital, of the claimant and his or her 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. Such property includes all monies held in financial institutions or otherwise, the market value of shares as well as 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 a person is personally using or enjoying i.e. residing in or, for example, a premises used by the claimant in carrying out a business.

In order for property to be assessable for means purposes, it must be owned by a claimant (or his or his spouse/partner, where applicable). In this regard, a property which is under probate administration is not assessable for means testing purposes. A claimant should advise the Department of any increase in their means as soon as probate is granted.

However, where a person is in beneficial occupation of a property and is carrying out a business thereon e.g. farming, the income from such a business may be assessable despite the fact that probate has not as yet been granted. Claimants should notify the Department where this is the case.