Written answers

Tuesday, 17 May 2022

Department of Employment Affairs and Social Protection

Social Welfare Benefits

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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495. To ask the Minister for Employment Affairs and Social Protection the reason that the disability allowance and the blind pension are treated differently in terms of the means allowed; the reason for the difference in the savings disregard between the two schemes; if she will review the terms for disability schemes that restrict the ability of a person to work, particularly in the instance of artists who engage in the arts for rehabilitative reasons; and if she will make a statement on the matter. [24484/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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In the means test for Disability Allowance and Blind Pension, 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. 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.

For both Disability Allowance and the Blind Pension, capital is assessed as part of the means test. Capital assessed 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 not included in the means assessment.

The Department uses an assessment formula, which is set out in legislation, to calculate a person's weekly means from capital. For Blind Pension, and most other social assistance schemes, the formula is as follows: the first €20,000 is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

For Disability Allowance, the first €50,000 is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

The Blind Pension is a means-tested payment paid to blind and visually impaired people. It is unique in the social protection system as it is a payment provided to people with a specific physical impairment. As such, it contains different eligibility and means assessment criteria to Disability Allowance. Unlike Disability Allowance, recipients of Blind Pension may also qualify for a range of other primary schemes such as Jobseeker’s Benefit, Illness Benefit, and One-Parent Family Payment.

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

In the means test, both schemes have an income disregard of €140 per week. In addition, 50% of earnings between €140 and €350 are also disregarded, i.e., 50% of earnings in this band are disregarded for the purpose of the means test. Earnings above €350 are currently assessed at 100%.

In relation to the means test, Budget 2022 measures will see the following changes effective from June:

- An increase in the upper disregard of €25 per week, from €350 to €375 for both payments

- An increase of €5.10 being applied to the general weekly means disregard entry point for the Disability Allowance. This increase will bring the entry point of the weekly means disregard for Disability Allowance in line with that of the Blind Pension, at €7.60 per week.

Legislation does not provide for a disregard for funding from grants for artists and as such, any awards made through these types of schemes are assessed as income in the means test. However, artists earning through their art can similarly avail of the disregards mentioned above.

I hope this clarifies the matter for the Deputy.

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