Disability Allowance is a 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 for a person of their age, experience or qualifications. The allowance is subject to a medical assessment, a means test and a habitual residency requirement.
Eligibility for my Department’s disability related income support schemes is not dependent on the type or category of illness or disability. Rather, entitlement to these supports is contingent on the extent to which a particular illness or disability impairs or restricts a person’s capacity to work.
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, is assessable for means testing purposes. The purpose of the means test is to ensure that resources are directed to those with the greatest income need. A person's home is not included in the means assessment and there are disregards in place in relation to certain income and assets.
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.
In addition, a person can earn up to €165 a week and keep their full rate of Disability Allowance. This is an increase of 38% since Budget 2021. In fact, a person can earn up to €527.60 a week and still retain a minimum rate of Disability Allowance and their secondary benefits.
In July 2024, the Government extended Free Travel Scheme to people aged over 17 and under age 66, who have never been medically fit to drive due to a disability or are medically certified as unfit to drive for a period of at least 12 months.
There are a number of other supports specifically for disabled people who are working. A person can retain their eligibility for the Free Travel scheme for 5 years after taking up employment and moving off a payment.
A person who had been in receipt of certain social welfare payments, such as Disability Allowance, for 12 consecutive months may retain their medical card for three years on moving into employment.
People who were on Disability Allowance and take up employment can currently be fast-tracked back to the payment if they cease their employment within 12 months. There are plans to extend this to three years.
Other recent measures, announced in Budget 2026, to help smooth the transition from welfare to work include allowing people moving from Disability Allowance to take up work to retain their Fuel Allowance payment for up to five years. The Back to Work Family Dividend has also been extended to this group, where they have children.
The Government recognises the significant additional costs that disabled people can face in their daily lives and is committed improving outcomes for disabled people by introducing permanent measures. That is why the Programme for Government includes a range of commitments to support disabled people, including a commitment to introduce a permanent annual cost of disability payment. These commitments will be advanced over the lifetime of the Government, having regard to the overall policy and budgetary context.
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.
I continue to keep the Department’s income support schemes for disabled people under review to ensure that they continue to meet their policy objectives.
I trust this clarifies the matter for the Deputy.