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Dáil

Written answer

Social Welfare Code

95. Deputy Catherine Connolly asked the Minister for 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]

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Dara Calleary Minister for Social Protection Fianna Fáil

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.

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