Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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72. To ask the Minister for Employment Affairs and Social Protection if her attention has been drawn to the problems facing artists with disabilities as highlighted by a campaign (details supplied), arising from the means testing of the blind pension and disability allowance; and the measures she plans to introduce to ensure artists with disabilities are not forced to choose between earning from their work and maintaining their vital stable social protection support as is currently the case. [57939/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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At the end of September 2021 there were almost 156,000 persons in receipt of means tested disability payments from my Department, comprising 154,563 persons on Disability Allowance (DA) and 1,047 in receipt of the Blind Pension (BP).

The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves, so that social welfare expenditure can be directed towards those who need it most.

In the means test, cash income that is assessed includes any income from employment or self-employment (and spouse/partner, if applicable), income from a social security pension from another country and maintenance payments.

Capital assessed as part of the means test 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. The family home is never assessed as part of the means test, regardless of who is the legal owner.

Both DA and BP are structured to support recipients to avail of opportunities to pursue their own employment ambitions, be that self-employment or insurable employment.

When an individual commences employment, they can avail of an income disregard of €140 per week. In addition, a 50% taper on earnings between €140 and €350 is also applied, i.e., 50% of earnings in this band are disregarded for the purpose of the means test. Earnings above €350 are assessed at 100% i.e. for every euro earned above €350 a euro reduction is applied.

Income is assessed on an annual basis, and then divided by 52 to ascertain a person’s weekly means. The means assessment is intended to reflect the income the person may reasonably be expected to receive during the coming 12 months. Where this is not ascertainable otherwise, the income for the last 12 months can be taken as a guide, allowing for any factors which it is known will vary. Assessing a person’s income in this manner takes account of the fact that some people’s income is irregular, and they will earn more during some periods than others.

The conditions attached to payment of Disability Allowance and Blind Pension are consistent with the overall conditions that apply to social assistance payments generally. This system of social assistance supports provides payments based on an income need with the means test playing the critical role in determining whether or not an income need arises as a consequence of a particular contingency – be that illness, disability, unemployment or caring.

It should be noted that measures introduced, in Budget 2022, will see increases to the above as follows:

1. An increase in the earnings threshold above which means is fully assessed - of €25, from €350 to €375 per week - for both the Disability Allowance and Blind Pension.

2. An increase in the general weekly means disregard entry point for Disability Allowance from €2.50 to €7.60. Currently the first €2.50 of weekly means is disregarded for Disability Allowance. The effect of this measure will be to increase the weekly rate of payment by up to €5.10 per week for DA recipients who have means. This increase also has the effect of bringing the general weekly disregard for DA in line with that of BP.

These measures take effect from June 2022.

In addition to the above, the Department also provides the Supplementary Welfare Allowance (SWA) scheme for those whose means are insufficient to meet their needs and those of their dependents. This scheme includes Exceptional Needs Payments, Urgent Needs Payments and SWA Supplements (heat, travel and dietary supplements). These means tested payments may be made to help meet essential expenditure which a person could not reasonably be expected to meet from their weekly income.

The Department regularly reviews its supports and payments schemes to ensure that they continue to meet their objectives, while any proposed changes have to be considered in an overall policy and budgetary context.

Brian Leddin (Limerick City, Green Party)
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74. To ask the Minister for Employment Affairs and Social Protection the specific social protection measures that will be funded in 2022 from the increase in the rate of carbon tax; and if she will make a statement on the matter. [57598/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Programme for Government is committed to ensuring that increases in the carbon tax will be progressive. This means protecting the most vulnerable in society from the impacts of the tax. In 2020; the ESRI examined the options available to offset the impacts of a carbon tax increase on low income households.

In light of this research, the Government has committed to very significant increases in a targeted package of social protection supports in Budget 2022, which will offset the impact of the increased carbon tax on low income households.

The specific measures are:

- An increase to the Qualified Child Payment of €2 per week for children under 12 and €3 per week for children aged 12 and over;

- An increase in the Living Alone Allowance of €3 per week. People living alone are often the elderly or people suffering from a disability who are at higher risk of poverty. These groups are also likely to have higher energy needs than other households;

- An increase to the Fuel Allowance of €5 per week. This will compensate a broad range of lower income households for the additional energy costs they are likely to incur, due to an increase in the carbon tax. This measure will be combined with a broadening of the threshold for Fuel Allowance eligibility and an increase in the income allowed for the means test that is applied to applicants. The increase in the rate of payment was effective from Budget week.

- An increase in the income threshold for the Working Family Payment of €10 per week. Research has found that children in energy poverty have a greater likelihood of respiratory illness. Using carbon tax funds to compensate low paid employees with children, will contribute to improved health outcomes, particularly when combined with the increases in the qualifying child payment.

Analysis undertaken using SWITCH, the ESRI tax and benefit model, to simulate the impact of the carbon tax increase and the compensatory welfare package, estimates that the net impact of the combined measures ensures that households in the bottom four income deciles will see all of the cost of the carbon tax increase offset, with the bottom three deciles being better off as a result of these measures.

The total cost of these interventions is projected at approximately €146m in 2022. This will be funded by the additional carbon tax funds of €105m that have been allocated to the Department of Social Protection, with the remaining €41m cost met by the Exchequer.