Dáil Éireann Debate, Thursday - 6 February 2025
167. Deputy James O'Connor asked the Minister for Social Protection if he has investigated the possibility of undertaking a review of the current means test for disability allowance to ensure that people affected by disability, who are marginally over the income threshold limit, are not left without adequate support; and if he will make a statement on the matter. [3918/25]
View answerMy Department's 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 2025 is expected to be almost €2.4 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, are 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.
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 €517.60 a week and still keep their entitlement to the minimum rate of Disability Allowance and their secondary benefits.
A review of means testing in the Department is underway. The outcome of the review will be used to inform decisions regarding any further changes to means testing. All prospective changes to means testing arrangements will have to be considered in both an overall policy and budgetary context.
I trust that this clarifies the matter for the Deputy.
