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Dáil

Written answer

Social Welfare Schemes

Summary

Deputy William Aird sought a €1,000 weekly earnings disregard and reform of the Disability Allowance means test. The Minister said Carer’s Allowance is not assessed, the cost of changes cannot currently be calculated, and a broader review of means testing will inform future budgetary decisions.

89. Deputy William Aird asked the Minister for Social Protection the estimated cost of increasing the disability allowance income disregard to €1,000 per week. [67460/26]

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90. Deputy William Aird asked the Minister for Social Protection if he will consider reforming the disability allowance means test to assess a disabled person’s own income rather than that of their partner or other family members, in order to improve financial independence and reduce poverty among disabled people. [67459/26]

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91. Deputy William Aird asked the Minister for Social Protection if he will examine the impact of the current disability allowance means test on recipients who live with a working partner who also receives carer’s allowance, particularly where the partner’s earnings reduce the disabled person’s payment. [67458/26]

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92. Deputy William Aird asked the Minister for Social Protection if he will consider increasing the weekly income disregard for Disability Allowance to €1,000 as part of Budget 2027, in line with a pre-Budget submission (details supplied). [67457/26]

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Dara Calleary Minister for Social Protection Fianna Fáil

I propose to take Questions Nos. 89, 90, 91 and 92 together.

Disability Allowance is my Department's primary disability related scheme. It 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 have continued or be expected to continue for at least one year. In addition, the person must be substantially restricted from doing work that would otherwise be suitable for a person of their age, experience, and qualifications. Eligibility for the payment is also subject to a habitual residency requirement.

Social welfare legislation provides that, for means-tested social assistance schemes, all income and assets belonging to the claimant, and their spouse or partner, where applicable, is assessable. This recognises the fact that couples operate as a single household and can share living expenses in a manner not available to a single person. The purpose of a means test is to ensure that scarce resources are directed to those with the greatest need. The application of a household means test directs income supports to households with fewer resources and supports an economically sustainable and socially equitable allocation of scarce resources. Where a person's spouse or partner is in receipt of Carer's Allowance, that payment is not assessed in the Disability Allowance means test and so it has now impact on the level of their Disability Allowance payment.

Disability Allowance has one of the highest capital disregards operated by my Department. 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. A person’s family home is not assessed as means.

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.

Calculating the cost of possible changes to the means test, such as increasing the earnings disregard, requires complex analysis. Consequently, it is not possible to provide the costing requested by the Deputy at this time.

The Programme for Government and the National Human Rights Strategy for Disabled People 2025 - 2030 both contain a commitment to reform the Disability Allowance Payment and remove anomalies in the current means test for the payment. My Department is currently reviewing means testing across all its social assistance schemes. The outcome of this review will be used to inform decisions regarding any further changes to means testing.

Any changes to Disability Allowance means tests can only 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 this clarifies the issue for the Deputy.

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