Joe Flaherty (Longford-Westmeath, Fianna Fail)
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383. To ask the Minister for Employment Affairs and Social Protection if steps will be taken to address an anomaly whereby a recipient of a non-contributory pension will not be able to rent out their empty home under the terms of the fair deal scheme; if she is aware that the former family home will now be treated as an asset and contribute to their means assessment, and in most instances renting out the home would mean the elderly person losing their pension. [62015/22]

Joe Flaherty (Longford-Westmeath, Fianna Fail)
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415. To ask the Minister for Employment Affairs and Social Protection will steps be taken to address an anomaly whereby a recipient of a non-contributory pension will not be able to rent out their empty home under the terms of the Fair Deal scheme; is he aware that the former family home will now be treated as an asset and contribute to their means assessment, and in most instances renting out the home would mean the elderly person losing their pension. [62016/22]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 383 and 415 together.

The Department of Social Protection provides income supports through a mixture of contributory payments (which are based on a person's social insurance record) and means-tested social assistance payments. The State Pension (Non-contributory) is a means-tested payment for people aged 66 and over, habitually residing in the State, who do not qualify for a State Pension (Contributory), or who only qualify for a reduced rate contributory pension based on their social insurance record. For the purposes of the means-test, it is necessary at the outset for applicants to provide full details of any income(s), assets, savings and investments they hold (and the income(s)/assets of their dependent spouse, civil partner, co-habitant, if applicable).

Following the award of pension, a reporting obligation continues to apply whereby the pension recipient (and, where relevant, their qualified adult dependant, personal representative or agent) must notify the Department in a timely manner of any change in their circumstances that may impact on their pension entitlement. Such changes would include notification of the commencement of rental of a property held by the pension recipient.

In general, the family home is not assessed as part of the means assessment for any of the Department’s schemes unless it is put to profitable use. An example of profitable use is where the family home is rented entirely while the applicant lives elsewhere.

The assessment of the family home in such situations is in keeping with the overarching aim of the system of means testing which is to ensure that, insofar as is reasonable, people with higher amounts of income or capital use their income or realise the value of their capital to support themselves, without relying solely on a social assistance payment.

Last July, I signed legislation which introduced a disregard of up to €269.23 per week in respect of income from renting a room in their own home. The prescribed conditions for benefitting from this disregard can be found in the Social Welfare (Consolidated Claims. Payments and Control) (Amendment) (No 10) (Income Disregard) Regulation 2022 (SI 397/22).

Any changes to assessment of capital or income would have to be considered in an overall budgetary context.

I trust this clarifies for the deputy.