Written answers

Wednesday, 26 March 2025

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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102. To ask the Minister for Employment Affairs and Social Protection the reason the blind pension is means-tested and counted as taxable income; the reason is it removed when visually impaired people earn over a certain amount; and if he will make a statement on the matter. [14306/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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My Department provides a suite of income supports for those unable to work due to illness or disability. These include insurance-based schemes, based on Pay Related Social Insurance (PRSI) contributions, and means-tested social assistance schemes.

The primary social assistance scheme for people who are blind or visually impaired is the Blind Pension, which is a means-tested payment payable to those aged between 18 and 66. Blind Pension is the only income support payment designed to cater for a specific disability.

As of end of January 2025 there were 916 recipients of Blind Pension. Estimated expenditure on Blind Pension for 2025 is expected to be almost €13 million.

Eligibility for Blind Pension requires that a person’s vision is impaired to such an extent that they cannot perform any work for which eyesight is essential or cannot continue in their ordinary occupation. The scheme is designed to support recipients to avail of opportunities to pursue their own employment ambitions, be that self-employment or insurable employment.

The earnings disregard for recipients of Blind Pension has increased by almost 38% since Budget 2021, from €120 to €165 currently. A person can earn up to €165 a week and keep their payment in full. Earnings between €165 and €375 from employment are assessed at 50%, and any earnings over €375 are fully assessed as means. This means that a person can earn up to €517.60 a week and keep a small portion of their payment and keep their secondary benefits.

Means-testing of Blind Pension is a statutory requirement under social welfare legislation. 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 at those who need them most.

By its nature, the means test takes account of the income a person or couple has in terms of cash, property - other than the family home - and capital. It does not take account of a person’s expenditure. In line with most social assistance payments, deductions permitted for Blind Pension include PRSI, union dues and pension contributions.

A review of means testing in the Department is underway. The outcome of the review will be used to inform decisions regarding any further changes to means testing. Any changes to means testing arrangements will have to be considered in an overall policy and budgetary context.

Blind Pension is a taxable social welfare payment. The taxation treatment of social welfare payments is a matter for the Minister for Finance.

I trust that this clarifies the matter for the Deputy.

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