1991. Deputy Mark Wall asked the Minister for Social Protection the estimated cost of increasing the disability allowance income disregard to €200 or €250 respectively and increasing the upper income cap to €400 or €450 respectively; and if he will make a statement on the matter. [56681/26]

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.

The earnings disregard for Disability Allowance has increased by almost 38% since Budget 2021 from €120 to €165 currently. 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. 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 €527.60 a week and still keep their entitlement to the minimum rate of Disability Allowance and their secondary benefits.

Based on the current earnings distribution, the annual cost of increasing the lower earnings disregard to €200 and the upper threshold to €400 is estimated at approximately €16 million. Increasing the lower earnings disregard to €250 and the upper threshold to €450 is estimated to cost approximately €39 million annually.

These estimates should be treated as indicative only. They estimate the direct impact on the personal rate of payment only, and exclude any consequential costs relating to increases for qualified adults, Child Support Payment, or secondary benefits. The estimates assume no behavioural response to the measure, including no additional recipients entering employment and no increase in earnings among existing workers as a result of the higher disregards. They are based on the current distribution of recipients across earnings bands and assume that recipients with earnings at or below the current threshold of €165 or less per week do not benefit from the measure.

Any changes to Disability Allowance means tests would have to be considered in a budgetary context, within the scope of the overall resources available for welfare improvements and in conjunction with other social welfare schemes.

I trust that this clarifies the matter for the Deputy.