Catherine Connolly (Galway West, Independent)
Link to this: Individually | In context

100. To ask the Minister for Employment Affairs and Social Protection when the means test for disability allowance will be abolished; and if he will make a statement on the matter. [20504/25]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

Disability Allowance is my Department's primary disability related social assistance scheme. Disability Allowance is a means-tested payment for people with a disability who are aged between 16 and 66. In order to be eligible, the disability must be expected to last for at least one year. The allowance is also subject to a means test, a medical assessment and a habitual residency requirement.

Estimated expenditure on Disability Allowance for 2025 is expected to be almost €2.4 billion with 168,000 recipients of this payment in February 2025.The purpose of the means test is to ensure that resources are directed to those with the greatest need for income supports by the State. According to Census 2022 data, over 1.1 million people living in Ireland declared to have a disability. Removing the means test for Disability Allowance would result in a significant increase in recipient numbers which would have impacts on the money available to support other vulnerable cohorts. For that reason, I do not propose to remove the means test.

It should be noted that Disability Allowance has one of the highest capital disregards operated by the Department of Social Protection. A recipient can have up to €50,000 in savings and still receive the full rate of payment. This is compared to €20,000 for most social welfare payments.

People on Disability Allowance can take up employment or self-employment and continue to receive all or part of their social welfare payment, depending on their income. A person can earn up to €165 a week and keep their full rate of Disability Allowance and up to €517.60 a week and still keep their entitlement to the minimum rate of payment and their secondary benefits.

The new Programme for Government commits to reform the Disability Allowance Payment and remove anomalies in the current means test. A review of means testing across all schemes in the Department is underway. The outcome of this review will be used to inform decisions regarding any further changes to means testing. All prospective changes to means testing arrangements will have to be considered in both an overall policy and budgetary context.