Dáil Éireann Debate, Thursday - 26 February 2026
16. Deputy Michael Cahill asked the Minister for Social Protection to urgently address the anomaly that exists for senior citizens being disqualified from entitlement to the State pension (non-contributory) due to holding shares (details supplied); and if he will make a statement on the matter. [15299/26]
View answerSocial welfare legislation provides that means tests take account of the income and assets of the person (and their spouse or partner) applying for the relevant scheme. The means assessment includes income from sources such as employment, self-employment, and occupational pensions. It also includes property owned, other than the family home, and capital such as savings, shares, and other investments.
In the case of any shares, including in this case Kerry Group shares, it is the market value of the shares that is taken into account, and a formula that is set out in legislation is applied to determine how the value of the shares is incorporated into the means test.
In respect of senior citizens, taking the case of the means assessment for a personal rate of the State Pension (Non-contributory), the first €20,000 (or €40,000 for a couple) of capital an applicant holds is fully disregarded; the next €10,000 is assessed at €1 per thousand, the next €10,000 is assessed at €2 per thousand, with the remainder assessed at €4 per thousand. Under this system people with capital assets of up to €111,000 - excluding the value of their family home - can still receive a partial pension payment.
The assessment of capital reflects an expectation that people with reasonable amounts of capital and property are in a position to use that capital, to support themselves without having to rely solely on a means-tested welfare payment. In this respect holdings of shares are treated the same as cash savings, Government bonds or other capital assets, with an exception as set out above for the value of the family home.
The use of means tests, including the assessment of capital assets, is important in targeting state funded supports to people who have greatest need and avoiding the provision of such supports to people who with significant assets or income.
While the case can always be made that the assessment of capital should be more generous, any such change comes with a cost - a cost that is either borne by taxpayers, including by taxpayers who may have less resources than the people seeking the increase in capital allowances, or a cost that is reflected in the reduction in funds available for essential state supports, including potential future increases in social welfare payments.
My Department is conducting a review of means testing within the social protection system. It is my intention that the review's findings will inform decisions regarding potential changes to means testing in future Budgets, but these must be taken in the context of the overall budgetary position.
