Written answers

Tuesday, 4 October 2022

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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433. To ask the Minister for Employment Affairs and Social Protection if persons that are in receipt of a disability allowance (details supplied) and that inherit a home from their family could lose their income; and if she will make a statement on the matter. [48348/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Department operates a range of means-tested social assistance payments. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse / partner, if applicable) applying for the relevant scheme.  Income and assets includes income from employment, self-employment, occupational pensions, maintenance payments as well as property owned (other than the family home) and capital such as savings, shares, and other investments. 

If the property in the case outlined by the Deputy is the claimant’s home, the inheritance will not impact on their Disability Allowance payment. Properties other than the primary residence will be assessed. The formula for this assessment for Disability Allowance is: the first €50,000 of capital is fully disregarded, the next €10,000 assessed at €1 per thousand, the next €10,000 assessed at €2 per thousand, with the remainder assessed at €4 per thousand. 

In the case where a Disability Allowance claimant sells their home, the means test does not take into account up to €190,500 of the gross proceeds of the sale if the person:

- moves to more suitable accommodation;

- moves in with someone who is caring for them and getting a carer's payment;

- moves to sheltered or special housing in the voluntary, co-operative, statutory or private sectors; or

- moves into a registered private nursing home,

If the person uses the proceeds of the sale to buy more suitable accommodation, the balance of the proceeds after buying the new accommodation is exempt up to a limit of €190,500.

If the Deputy would like to contact my Department and provide details of specific cases where he feels there is an issue, my officials can look into these cases and provide a more detailed response.

I hope this clarifies the matter for the Deputy.

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