Dáil Éireann Debate, Thursday - 5 February 2026
290. Deputy Eoin Hayes asked the Minister for Social Protection if his Department has considered abolishing the means test for disability allowance, or excluding income generated from work from the means testing formula, in recognition of the fact that disabled people who are able to work still endure the same higher cost pressures; and if he will make a statement on the matter. [8868/26]
View answer291. Deputy Eoin Hayes asked the Minister for Social Protection to provide any analysis conducted by his Department which compares best practice on the structuring of disability payments with similar allowances in other jurisdictions, particularly with regard to weather abolishing the means test for the disabilities allowance has been considered in light of the lack of a means test for the personal independence payment in the UK. [8869/26]
View answerI propose to take Questions Nos. 290 and 291 together.
Supporting disabled people is a key priority for the Government and for me as Minister for Social Protection. That is why the Programme for Government contains a range of measures to support disabled people.
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.
Disability Allowance and Blind Pension are designed so recipients can take up employment or self-employment and continue to receive all or part of their income support, depending on their income. A person can earn up to €165 a week and keep their full rate payment. Earnings between €165 and €375 from employment are assessed at 50%, and any earnings over €375 are fully assessed as means. This means a person can earn up to €527.60 a week and still keep their entitlement to the minimum rate of payment and their secondary benefits. Earning disregards have increased by almost 38% since Budget 2021 from €120 to €165 currently.
The Programme for Government commits us to reforming the Disability Allowance Payment and remove anomalies in the current means test. 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.
It is always informative to look at and learn from best practice in other jurisdictions. However, comparisons can be misleading at times as payments and systems are so different.
We know that disabled people are at a much higher risk of poverty and have a higher cost of living and we want to address that. For that reason, there are also commitments in relation to the rate of payment and the development of an annual cost of disability support payment.
In Budget 2026, I provided for a €1.15 billion package of new social protection measures. This contained significant targeted measures to support disabled people, including:
• A €10, or 4.1%, increase in the weekly rates of payment, bringing the personal rates of payment to €254 per week from this month.
• A €5 increase or 15% increase in the Fuel Allowance, bringing it to €38 per week or €1,064 per annum from this month.
• Both of these increases were ahead of cost increases. They compare to a general inflation rate reported by the Central Statistics Office of 3.2% in the year to the end of November 2025 and an energy costs increase of about 3.5% for the same period.
• Under the National Human Rights Strategy for Disabled People, my Department will lead a Strategic Focus Network on the Cost of Disability. The work of this network, which will include disabled people and their advocates, will inform the approach to be taken in delivering on the Programme for Government commitment to introduce a permanent Annual Cost of Disability Support Payment. I have asked my officials to expedite this work with a view to bringing a proposal to Government in the first half of next year. My officials have held a number of meetings to discuss issues in relation to the Strategic Focus Network Summit as well as cost of disability issues more generally. A public consultation process on how a cost of disability payment can best be delivered will also be launched shortly.
• Our 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.
