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Dáil

Written answer

Social Welfare Schemes

991. Deputy Mick Barry asked the Minister for Social Protection the estimated increased cost of removing the means test for disability allowance and providing it at the full rate for all who qualify; and if she will make a statement on the matter. [35232/24]

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Heather Humphreys Minister for Social Protection Fine Gael

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

Estimated expenditure on Disability Allowance for 2024 is expected to be almost €2.2 billion.

Social welfare legislation provides that, for means-tested social assistance schemes, all income and assets belonging to the claimant, and his or her spouse/partner where applicable, is assessable for means testing purposes. 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. It is the nature of means-tested schemes that above a certain level of means a person is not entitled to a payment, as it is deemed their own means are sufficient to provide for their needs.

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.

For people in employment, an income disregard of €165 per week is applied with 50% of earnings between €165 and €375 also disregarded. Persons can currently earn up to €165 per week and keep their payment in full and can earn up to €505.10 per week and keep a small portion of their payment and keep their secondary benefits.

In Census 2022, over 1.1 million people reported having a disability. If we look at those aged 16-66, that number drops to 680,000 people.   Based on these figures, the estimated increased cost of removing the means test for Disability Allowance and providing it at the full rate for all who qualify would be up to €6 billion annually. This figure does not include increases for Qualified Adults or Qualified Children or secondary benefits.

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