Written answer
Budget 2027
The Minister said a departmental review of means testing, including the treatment of savings and recommendations from the Oireachtas sub-committee, is nearing completion. Its findings will inform possible Budget 2027 changes, subject to wider policy and budgetary considerations.
769. Deputy John Connolly asked the Minister for Social Protection if he plans to amend the means-assessment system as it applied to savers in Budget 2027, in line with the recommendations contained in the 2024 report of the Social Welfare Oireachtas Sub-Committee, and further in line with the commitment in the Programme for Government to give effect to those recommendations. [65026/26]
Comment on this
Social welfare legislation provides that, for social assistance schemes, income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her spouse/partner, where applicable, is assessable for means assessment purposes.
The system of social assistance provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or caring. This ensures that each recipient has a verifiable income need and that resources are targeted to those who need them most.
The formula for assessing the value of capital for all schemes (except Disability Allowance, Carer's Allowance and Supplementary Welfare Allowance) is as follows: the first €20,000 is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed (capital over €40,000) at €4 per thousand.
The formula for assessing the value of capital for Disability Allowance and Carer's Allowance is as follows: the first €50,000 is fully disregarded; the next €10,000 assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed (capital over €70,000) at €4 per thousand.
As the role of Supplementary Welfare Allowance is different to that of other social assistance schemes, capital is assessed in a different manner.
A comprehensive review of means testing in the social protection system is currently underway in my Department. This will take into account the report on Means Testing in the Social Welfare System in Ireland published by the Joint Committee on Social Protection, Community and Rural Development, and the Islands. The purpose of the review of means testing is to look at the different means-tested schemes and to identify any issues in terms of the application of their respective means test.
It is my intention that the review's findings will inform decisions regarding potential changes to means testing in future Budgets. The review is currently being finalised and reviewed internally, and I expect that it will be submitted to me shortly.
Due to the complexity of the review, I will carefully and thoroughly evaluate it to determine the best way to utilise its findings and identify those that may warrant further consideration.
However, any prospective changes to means-testing arrangements would need to be evaluated and considered within the overall policy and budgetary context.