John Lahart (Dublin South West, Fianna Fail)
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403. To ask the Minister for Employment Affairs and Social Protection if the profit gained from the agricultural use of land (details supplied) and or the capital value of the piece of land will be taken into account for a means test for an application for a disability allowance; and if she will make a statement on the matter. [56621/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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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 the recipient has a verifiable income need and that resources are targeted to those who need them most. 

Social welfare legislation provides that, for social assistance schemes, such as Disability Allowance, income and capital (for example 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 assessment of capital reflects an expectation that people with reasonable amounts of capital and property are in a position to use that capital, or to realise the value of the property, to support themselves without having to rely solely on a means-tested welfare payment.

In the case of Disability Allowance, an applicant can have up to €50,000 in capital and still receive the full rate of payment; 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.

However, it is important to note that capital assessment does not include property which is being personally used or enjoyed by the claimant such as the family home where they reside or a premises or a farm of land used by the claimant in carrying out a business.

Where a person is farming their land, or leasing their land, the assessment of means is designed to reflect the actual net income from farming and looks at gross income, less allowable expenses necessarily incurred. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year.  However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation.

I trust this clarifies the matter for the Deputy.