Written answers

Wednesday, 26 February 2025

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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205. To ask the Minister for Employment Affairs and Social Protection the reason that capital value of land is reckonable for some means tested social welfare, i.e. jobseeker's allowance, and not for other means tested social welfare payments, i.e., State pension (non-contributory); and if he will make a statement on the matter. [8539/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Means testing payments ensures that the State’s limited resources are directed towards those who are in the most need of financial support.

The means test examines the following types of income:

Cash income (including income from work)

Property that someone personally uses

Capital (savings and investments) and property that someone does not personally use.

The house a person lives in is not included in the means test, unless the person is getting an income from it.

Both Jobseeker's Allowance and State Pension (Non-Contributory) are statutory means-tested payments, with specific capital rules set out in schedules to the Social Welfare (Consolidation) Act.

Where someone owns property, or has investments, or any other form of capital, the value of the capital is assessed using a standard formula (set out in the table below), regardless of whether the person is getting an income from the property or investment.

Capital 

Weekly means assessed

First €20,000
Nil
Next €10,000
€1 per €1,000
Next €10,000
€2 per €1,000
Balance
€4 per €1,000
This same formula applies to both Jobseeker's Allowance and State Pension (Non-Contributory). Different formulae are used to calculate weekly means assessed for certain other schemes such as Disability Allowance, Carer's Allowance and Supplementary Welfare Allowance.

If the Deputy provides details of any specific claims where the issue has arisen, I can arrange for it to be examined further.

I trust this clarifies the matter for the Deputy.

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