Michael Creed (Cork North West, Fine Gael)
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306. To ask the Minister for Employment Affairs and Social Protection the position regarding the means test for State pension (non-contributory) as it applies to money on deposit; if she will specifically clarify the position regarding money on deposit held jointly, where one of the account holders is in receipt of a State pension (contributory) and his spouse is contemplating an application for a State pension (non-contributory); and if she will make a statement on the matter. [46899/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Social welfare legislation provides that, for social assistance schemes such as the State Pension (Non-Contributory), all income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her spouse/partner/cohabitant, where applicable, are assessable for means assessment purposes.

The system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that each recipient has a verifiable income need and that resources are targeted to those who need them most.

If a claimant is married, in a civil partnership or cohabiting, the means of the couple will be assessed. This is the case even if only one of the couple is actually claiming a payment. The means assessed include income from employment or self-employment, non-social welfare pensions, and the capital value of savings, investments and property other than the family home. It should be noted that the value of the family home, regardless of who is the legal owner, is never taken into account in this assessment.

It should be noted that the full value of capital is not assessed. The standard formula for assessing the value of capital for most social welfare payments is as follows: the first €20,000 is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

Any proposals to change the means assessment formulas for social assistance schemes would have to be considered in an overall budgetary and policy context.

I trust this clarifies the matter for the Deputy.