Claire Kerrane (Roscommon-Galway, Sinn Fein)
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197. To ask the Minister for Employment Affairs and Social Protection if consideration has been given to exempting arts grants and funding self-employed individuals receive as artists from means testing criteria, similar to the rule introduced under Catherine's Law for educational purposes (details supplied); if she recognises current rules that consider funding and grants as means-limits recipients of disability-related supports to excel in their field given that they often cannot take up funding in case they lose their entitlement; and if she will make a statement on the matter. [47471/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability Allowance and Blind Pension are the primary means tested social assistance schemes, which are also subject to a number of other conditions, including a medical assessment and habitual residency requirements.

It is important to note that within the schemes a number of disregards apply, for the purpose of the means test.  These include:  

1. Both schemes are structured to support recipients to pursue employment opportunities, 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 €375 are also disregarded for the purpose of the means test.

2. If a customer in receipt of Disability Allowance or the Blind Pension receives income/a grant for a piece of work, the income would be assessed, based on the number of weeks allocated for the work and taking into account the income disregards that apply for self-employment.

3. Capital disregards also apply for both schemes

4. In self-employment cases, it is important to note that income is taken to be the gross profit less allowable work-related expenses (but not drawings). Expenses directly related to self-employment can be offset against income and while, there is no exhaustive list of all expenses allowed, since expenses vary with the nature and extent of the self-employment.The following are the main allowable expenses in most instances:

- Materials (supplies costs)

- Motor running costs (portion applicable to business)

- Depreciation of machinery or equipment

- Insurance relating to the business

- Telephone (portion applicable to business)

- Lighting and Heating (for business and not domestic use)

- Advertising

- Bank Charges

- Stationery

- Van Leasing

- Labour Costs

- Pension plan

- Any other costs associated with running the business.-Class S PRSI contributions

In relation to the type of occupation/sector a person is engaged in, the above supports are available on an equal basis i.e. the same level of support is available to all persons who are self-employed (while in receipt of a payment under both schemes) regardless of the sector they work in.

Separately, the Department also seeks to support persons in receipt of the Disability Allowance and the Blind Pension to pursue educational or training opportunities and as a result, a number of disregards are in place.  These include:

1. Where a person is granted a bursary, stipend or scholarship towards completing a PhD. This is subject to an annual limit of €20,000 (i.e., if a recipient gets more than one bursary, the combination cannot exceed €20,000) and is available for a maximum of four years. 

2. The maintenance portion of a SUSI Higher Education Maintenance Grant.

3. Any allowance under the Home Tuition Scheme administered by the Department of Education;

4. 1916 Bursary Fund payments administered by the Department of Further and Higher Education, Research, Innovation and Science;

5. Any amount of a U-varsity Higher Educational Scholarships for Adult Learners up to a maximum of €7,000 per annum;

6. Any payments of a Special Transport Grant made by the Minister for Education under the School Transport Scheme for Children with Special Educational Needs;

7. Any amount of training allowance received for participation in a rehabilitation training course approved by the Minister for Health;

The Department also supports social welfare recipients to avail of education and training opportunities through its Back to Education scheme, as well as by referrals to further education and training opportunities through its Intreo service.

My 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.

I trust that this clarifies the issue for the Deputy.

Claire Kerrane (Roscommon-Galway, Sinn Fein)
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198. To ask the Minister for Employment Affairs and Social Protection the reason self-employed individuals who are in receipt of disability-related social welfare supports are subject to an annual review of income that is based on six months of the year and may not be reflective of their annual income; the reason this assessment of self-employed recipients of disability-related supports differs from annual levies of other self-employed individuals, which are usually at the end of a year; and if she will make a statement on the matter. [47472/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department provides a number of income supports for those unable to work due to illness or disability. These include insurance-based schemes, based on Pay Related Social Insurance (PRSI) contributions, and means-tested social assistance schemes.  

The primary disability related social assistance scheme is the Disability Allowance, which is a means-tested payment for people with a specified disability who are aged between 16 and 66.  In addition to the means test, in order to be eligible, the disability must be expected to last for at least one year.  The allowance is also subject to a medical assessment and a habitual residency requirement.  

At the end of June 2022, there were 156,000 recipients of Disability Allowance, including some 14,750 persons in employment / self –employment while receiving a payment under the scheme.

The other smaller disability related scheme is the Blind Pension, which is a means tested payment paid to blind people and certain people with low vision, aged between 18 and 66, who are habitually resident in the State.  

At the end of June 2022, there were 1,014 recipients of the Blind pension, including some 50 persons in employment/self –employment while receiving a payment under the scheme.

Both the Disability Allowance and the Blind Pension are structured to support recipients to avail of employment opportunities, 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, 50% of earnings between €140 and €375, are also disregarded for the purpose of the means test. 

When a customer informs the Department of a commencement of self-employment, a review will not be undertaken for a period of 12 months after the commencement of self-employment.  The Department writes out to the client informing them of this procedure and advising them to keep all receipts etc. as an Officer of the Department will be reviewing earnings in 12 months’ time.  

The onus is on customers to inform the Department of any changes in their circumstances. This is provided for in legislation and recipients of the Disability Allowance and Blind pension sign a declaration to this effect when they make their application for the scheme.  An example of a change in circumstances includes where a claimant takes up employment or self-employment.

When income from employment or self-employment is being assessed it is 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 may be irregular, and they will earn more during some periods than others.

It is important to note that reviews of Disability Allowance and Blind Pension payments are carried out where a claimant requests same, for example where a person is self-employed and experiences a change in their income and/or if s/he feels their payment, under a scheme, needs to be adjusted. 

It would be rare that a review would be undertaken or requested after six months.

Separately, the Department also has an important control function, under which systematic, periodic reviews are carried out to confirm that all eligibility conditions (such as household means, medical and habitual residency requirements) continue to be fulfilled and that no disqualifications from receiving such payments have arisen and to avoid situations where overpayments are made.  As above, in this context Officers, when reviewing means as one part of the eligibility requirements, take into account that some people’s income may vary (for both persons in self-employment and those in insurable employment) and that they may earn more during some periods than others.

I trust that this clarifies the matter for the Deputy.