Written answers

Wednesday, 31 January 2024

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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96. To ask the Minister for Employment Affairs and Social Protection the estimated cost of expanding Catherine’s Law to exempt the receipt of scholarships or grants from An Chomhairle Ealaíon by recipients of disability allowance or the blind pension from their means testing. [4476/24]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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97. To ask the Minister for Employment Affairs and Social Protection the estimated cost of expanding Catherine’s Law to exempt the receipt of the basic income for the arts scheme by recipients of disability allowance or the blind pension from their means testing. [4477/24]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 96 and 97 together.

Disability Allowance and Blind Pension are means tested social assistance schemes, which are also subject to a medical assessment and habitual residency requirement.The means test plays a critical role in determining if an income need arises as a consequence of a particular contingency - be that illness, caring, unemployment or disability. Applying a means test not only ensures that the recipient has an income need but also that scarce resources are targeted. The means assessment reflects the fact that there is an expectation that people with reasonable amounts of income or capital are in a position to use these resources to support themselves, so that social welfare expenditure can be directed towards those who need it most.

There are a number of scholarships, such as those awarded by certain charitable organisations, which are not assessed as part of the means test for any social welfare payment. These include payments under the 1916 Bursary Fund and under Higher Educational Scholarships for Adult Learners from Uversity, to a maximum of €7,000 per annum. Uversity is a registered charity that has been awarding Higher Education Scholarships to adult learners since 2018. In addition, in 2021/22, disregards were introduced for persons in receipt of the Disability Allowance and Blind Pension who have been granted a bursary, stipend or scholarship towards completing a PhD.

My department encourages social welfare recipients to avail of education and training through the Back to Education scheme, as well as by referrals to Education and Training Board courses through the Department's Intreo service. In addition, income received from the SUSI grant is disregarded in the means test for most social welfare schemes.

Disregards across all of the Department's schemes are kept under constant review and just last November I signed Regulations to disregard up to €7,000 from UCD’s Cothrom na Féinne Scholarships. This will support students on low incomes to access third level education and to alleviate the financial barriers facing families in receipt of social welfare.

Legislation does not provide for a disregard for funding from grants for artists and as such, any awards made through these types of schemes are assessed as income in the means test. Without more information about the number of people availing of these grants and their monetary value, it is not possible to estimate the cost of disregarding them, as per the Deputy's question.

Disability Allowance and Blind Pension have been designed to support recipients pursuing employment opportunities, be that self-employment or insurable employment. When a person is in employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 are also disregarded for the purpose of the means test.

If a person in receipt of Disability Allowance or Blind Pension receives income in the form of a grant for a piece of work, the grant is divided by the number of weeks allocated for the work and then assessed, taking into account the income disregards that apply.Any proposed changes to the means test for schemes, would need to be considered in an overall budgetary and policy context.I trust that this clarifies the matter for the Deputy.

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