Written answers

Wednesday, 24 September 2025

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Ruairí Ó MurchúRuairí Ó Murchú (Louth, Sinn Fein)
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94. To ask the Minister for Employment Affairs and Social Protection the estimated cost in 2026, if the maximum rate of disability allowance were increased to €258.50 per week; if the maximum rate of State pension (contributory) were increased to €315 per week; and if he will make a statement on the matter. [50725/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The estimated annual cost of increasing the maximum rate of Disability Allowance from €244 to €258.50 is €139.1 million.

The estimated annual cost of increasing the maximum rate of State Pension Contributory from €289.30 to €315 is €732.8 million.

Changes to rates of individual schemes in isolation from the wider programme of working age and pension schemes would risk the introduction of unintended consequences.

It should be noted that these costings include a proportionate increase for qualified adults and for those on reduced rates of payment, where relevant.

These costings are based on the estimated average number of recipients in 2026, and are subject to change in light of emerging trends and subsequent revision of the estimated number of recipients.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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95. To ask the Minister for Employment Affairs and Social Protection pursuant to the Programme for Government, the status of plans to reform the disability allowance payment; his plans to remove the means test for disability allowance payments; and if he will make a statement on the matter. [50763/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Supporting disabled people is a key priority for me and for the Government. That is why the Programme for Government contains a range of measures to support disabled people.

One of these commitments was the publication of a new Disability Strategy. I am very pleased that we recently published the National Human Rights Strategy for Disabled People. This Strategy sets out a whole-of-Government approach to disability, with its focus on ensuring full participation of disabled people in Irish society.

Disability Allowance is my Department's primary disability related social assistance scheme. The payment is subject to a medical assessment, a means test and a habitual residency requirement.

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.

Applying a means-test ensures that the recipient has an income need and that scarce resources are targeted to those with the greatest need. This approach supports an economically sustainable and socially equitable allocation of scarce resources.

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 compares with €20,000 for most social welfare payments.

Over the last four budgets the Government has progressively improved payment rates and income disregards for disabled people. The weekly payment rates for Disability Allowance have increased by €41 in that time. The earnings disregard has increased by almost 38% since Budget 2021 from €120 to €165 currently. This enables those in receipt of Disability Allowance to earn more without having a negative impact on their means tested payment. This means that people can earn up to €165 per week and keep their payment in full and can earn up to €517.60 per week and keep a portion of their payment.

The Programme for Government commits to reform the Disability Allowance Payment and remove anomalies in the current means test. There are also commitments in relation to the rate of payment and the development of an annual cost of disability support payment.

We know that disabled people are at a much higher risk of poverty, have lower employment rates and a higher cost of living and we want to address that.

The National Human Rights Strategy for Disabled People recognises these issues and, among other things, tasks the Department of Social Protection, to lead a Strategic Focus Network including people with disabilities and their advocates, on the Cost of Disability. The work of this network will help to inform our approach to the reform of disability payments.

These commitments in both the Programme for Government and the new strategy will be progressed over the lifetime of the Government, having regard to the available resources.

I trust this clarifies the matter for the Deputy.

Photo of John Paul O'SheaJohn Paul O'Shea (Cork North-West, Fine Gael)
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96. To ask the Minister for Employment Affairs and Social Protection if he plans to increase the wage subsidy scheme rates; and if he will make a statement on the matter. [50854/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The Wage Subsidy Scheme is a key disability employment support provided by my Department. It aims to encourage employers to offer substantial and sustainable employment to disabled people through a subsidy.

As part of Budget 2022, my Department increased the base subsidy rate from €5.30 to €6.30 per hour. This gives a total annual subsidy available of €12,776 based on a 39-hour week. The maximum subsidy rate under Strand 2 is €9.45 per hour, giving a total subsidy of €19,164.60 per year.

An employer receives this increase in the subsidy rate if they hire more employees on the Wage Subsidy Scheme. An employer who employs 25 or more employees on the Wage Subsidy Scheme may receive a grant of €30,000 towards the cost of employing an Employment Assistance Officer.

Last year, my Department published a review of the Wage Subsidy Scheme following a public consultation. The review made six recommendations, including to reduce the minimum required hours of the scheme, to expand the scheme to the charity and voluntary sector and to remove terms such as ‘productivity deficit’ from the scheme to better align the scheme with the social model of disability. An additional €3.7 million has been allocated to implement the review’s recommendations.

The review also recommended that the rate of the subsidy be examined. Under both the recently published National Human Rights Strategy for Disabled People 2025-2030 and the Programme for Government, the Government has committed to review the minimum hours requirement under the Wage Subsidy Scheme and to examine an increase to the payment rate.

These commitments will be advanced over the lifetime of the Government in the context of the annual budget process and in light of the resources available.

I trust this clarifies the issue for the Deputy.

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