Dáil Éireann Debate, Wednesday - 18 June 2025
111. Deputy Michael Cahill asked the Minister for Social Protection if he will increase the current means test threshold for disability allowance that is currently set at €50,000 and has not been reviewed for years and is out of touch with inflation and the current cost of living (details supplied); and if he will make a statement on the matter. [33091/25]
Amharc ar fhreagraDisability Allowance is a social assistance payment for people who are aged between 16 and 66 with an injury, disease or disability that has continued, or may be expected to continue, for at least one year and, as a result of this disability, the person is substantially restricted in undertaking work that would otherwise be suitable. The payment is subject to a medical assessment, a means test and a habitual residency requirement.
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.
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 efficient 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 is compared to €20,000 for some other social welfare payments.
Over the last four budgets the Government has progressively improved payment rates and income disregards for disabled people. The weekly payment rates for Disability Allowance have increased by €41 in that time.
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. The earnings disregard has increased by almost 38% since Budget 2021 from €120 to €165 currently. A person can currently earn up to €165 a week and keep their full rate of Disability Allowance and up to €517.60 a week and still keep their entitlement to the minimum rate of payment and their secondary benefits.
My Department is currently reviewing means testing across all its social assistance schemes. I am due to receive this review shortly and I can assure the Deputy that I will consider it carefully. The outcome of this 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.
The Programme for Government includes a commitment to reform the Disability Allowance Payment, to remove anomalies in the current means test and to introduce a cost of disability support payment. These commitments will be progressed over the lifetime of the Government, having regard to the available resources.
I trust this clarifies the matter for the Deputy.
