Bernard Durkan (Kildare North, Fine Gael)
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1422. To ask the Minister for Employment Affairs and Social Protection the level of savings a person may have and still qualify for a means-tested payment or part thereof; and if she will make a statement on the matter. [15408/18]

Regina Doherty (Meath East, Fine Gael)
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Social welfare legislation provides that the yearly value of property (including capital) owned but not personally used or enjoyed is assessable 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.

The capital assessment formula for social assistance schemes provides for an initial disregard of a certain amount of capital, and an increasing notional weekly value for amounts in excess of the disregarded amount. For most schemes, such as jobseeker’s allowance, farm assist, one-parent family payment and the state pension non-contributory, the initial disregard is €20,000 of capital. The capital disregard in the case of disability allowance is €50,000 and, for supplementary welfare allowance, is €5,000.

The capital assessment formula is outlined in the table below.

The amount of savings that a person can have and still qualify for a part payment varies by scheme. For instance, some schemes, such as the state pension non-contributory, one-parent family payment and carer’s allowance, have a general means disregard. State pension non-contributory (SPNC) has a general means disregard of €30 per week. This means that a person in receipt of SPNC with no other income can have savings of €40,000 (which would result in a weekly means assessment from capital of €30) and qualify for the maximum weekly rate of payment. An SPNC recipient can have up to €257.70 of weekly means and qualify for a minimum payment. Accordingly, a single pensioner could have €96,000 in savings and no other means, which would be assessed as €254 weekly means and a weekly SPNC payment of €7 per week. The pensioner could also qualify for fuel allowance, the household benefits package, the living alone increase, the new telephone support allowance, and Free Travel.

A jobseeker can have €20,000 in savings and qualify for the maximum weekly rate of jobseeker’s allowance. A single claimant could have savings of €80,000 and no other means, which would be assessed as weekly means of €190. The jobseeker could qualify for a €8 per week payment, and be eligible for a range of employment supports.

It should be noted that 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 people 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.