Pat Gallagher (Donegal, Fianna Fail)
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253. To ask the Minister for Social Protection if he will consider allowing mortgage payments as an income disregard when assessing means for eligibility for farm assist; and if he will make a statement on the matter. [15362/17]

Leo Varadkar (Dublin West, Fine Gael)
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The Department operates a range of means tested social assistance payments, including farm assist. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse/partner, if applicable) applying for the relevant payment. Income and assets include income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares and other investments.

The value of a claimant’s family home is not assessable for means assessment purposes. Disregarding payments on the home as well as the value of the home itself would therefore represent a ‘double credit’ and is not a step that I am currently considering.

It should be noted that where there is an outstanding mortgage on a second property, the second property is assessed at the current market value of the property less any mortgage owed. The balance is then assessed as capital.

The capital assessment method involves disregarding an initial amount of capital (€20,000 for most social assistance schemes such as jobseeker’s allowance, farm assist and the state pension non-contributory), and applying an increasing notional weekly value for amounts in excess of the disregarded amount, as outlined as follows.

Table: Social Welfare Capital Means Assessment (excluding Supplementary Welfare Allowance and Disability Allowance)

The weekly entitlement of the person is the maximum weekly rate of payment for the person less the means calculated. As the outstanding value of any mortgage is netted off against the market value of the asset no account is taken of mortgage payments. In this regard it is worth noting that if mortgage payments were taken into account, the people who would benefit would be those who had income or assets of varying levels and, accordingly, these recipients would be treated more favourably than recipients who had fewer or no personal resources.

As a result of the improvements to the Farm Assist means arrangements announced in Budget 2017, it should be noted that 70% of farm income is now assessed as means, down from 100% (which is equivalent to a 30% income disregard). Also, an additional annual means disregard of €254 for each of the first two children and €381 for the third and subsequent children now applies, benefitting farm families. All existing farm assist recipients currently assessed with means will have their payments adjusted to take into account the changes in Budget 2017.

Farm Assist recipients have also benefitted from the €5 per week increase in the weekly rates of payment paid since 15 March, and the 85% Christmas Bonus paid December last. Furthermore, Farm Assist recipients are eligible to avail of the 500 additional places on the Rural Social Scheme announced in Budget 2017.

I hope this clarifies the matter for the Deputy.