Written answers

Wednesday, 27 May 2020

Department of Employment Affairs and Social Protection

Disability Allowance

Photo of James BrowneJames Browne (Wexford, Fianna Fail)
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978. To ask the Minister for Employment Affairs and Social Protection if she will review the terms governing the disability allowance to allow the recipient's pensions to be treated the same as income; and if she will make a statement on the matter. [7797/20]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Social welfare legislation provides that, for social assistance schemes such as Disability Allowance, income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her partner, where applicable, is assessable for means assessment purposes.

For Disability Allowance, income from all sources, such as from an occupational pension or social welfare pensions from another country are taken into account in the means test. The purpose of this is to maintain the policy of ensuring that social welfare expenditure is targeted to those who need it most.

The assessment of means can vary from scheme to scheme depending on the nature and purpose of the scheme. Sometimes a certain amount of income, or income from particular sources, is not taken into account for a particular scheme. This is known as an income disregard.

There is an earnings disregard in place for recipients of Disability Allowance which allows them to earn up to €120 per week and retain their full payment, while only half of earnings between €120 and €350 are assessed in the means test. This aims to achieve a balance between ensuring resources are targeted towards those with the greatest need while supporting people to take up employment opportunities.

In addition, Disability Allowance is unique in the social welfare system as the first €50,000 of capital (e.g. savings, shares, property) is disregarded in the capital means test. This compares to €20,000 for most other social assistance schemes.

Any changes to the disregards or the income thresholds of social welfare schemes would have cost implications and would have to be considered in the overall policy and budgetary context.

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