Richard Bruton (Dublin Bay North, Fine Gael)
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288. To ask the Minister for Employment Affairs and Social Protection if she will review the way in which savings and assets are treated in means-test assessments, since the very stringent valuation rules risk becoming a deterrent to saving for a fruitful retirement; and if she will make a statement on the matter. [14461/23]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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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.

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 include 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.

The assessment of capital reflects the fact that there is 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 property to support themselves without having to rely solely on a means-tested welfare payment.

In this regard, for most social assistance schemes, the first €20,000 of capital is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

Disability Allowance and Carer’s Allowance have the highest capital disregard of all social assistance schemes; the first €50,000 of capital is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand.

Means tests in my Department are kept under regular review and a number of significant changes have been made in recent years. I have also committed to a carrying out broad review of means testing this year which will include a review of how capital is assessed.

Any proposals to change the capital means assessment would have to be considered in the overall budgetary context.

I trust this clarifies matters for the Deputy.