Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability Allowance is a payment for people who are aged between 16 and 66 with an injury, disease or disability that has continued, or may be expected to continue, for at least one year and, as a result of this disability, the person is substantially restricted in undertaking work that would otherwise be suitable.

The allowance is subject to a medical assessment, a means test and a habitual residency requirement. The means assessment includes income from employment or self-employment, income from a social security pension from another country and maintenance payments.

For people in employment, an income disregard of €165 per week is applied. In addition, 50% of earnings between €165 and €375 is also disregarded for the purpose of the means test. If a claimant is married, in a civil partnership or cohabiting, the means of the couple will be assessed. This is the case even if only one of the couple is claiming a payment.

Capital is also assessed, including savings, investments, shares and property. However, the home in which the claimant lives is not included in the assessment of means unless the person receives an income from it.

It must be noted that the entire amount of income or capital is not included while assessing means. The first €50,000 of capital and savings is fully disregarded, the next €10,000 is assessed at €1 per thousand, the following €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand. These disregards are the highest among social welfare schemes.

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.

I trust this clarifies the matter for the Deputy.