S.I. No. 184 of 2005

SOCIAL WELFARE (CONSOLIDATED PAYMENTS PROVISIONS) (AMENDMENT) (CAPITAL ASSESSMENT AND CARERS) REGULATIONS 2005

S.I. No. 184 of 2005

SOCIAL WELFARE (CONSOLIDATED PAYMENTS PROVISIONS) (AMENDMENT) (CAPITAL ASSESSMENT AND CARERS) REGULATIONS 2005

The Minister for Social and Family Affairs, in exercise of the powers conferred on him by sections 3 (as amended by section 18 of the Social Welfare (Miscellaneous Provisions) Act 2004 ( section 12 of the Social Welfare (Miscellaneous Provisions) Act 2002 ( section 10 of the Social Welfare Act 2000 (No. 4 of 2000)) of the Social Welfare (Consolidation) Act 1993 (No. 27 of 1993) and Rules 1(5) (substituted by section 8 of the Social Welfare (Miscellaneous Provisions) Act 2003 ( section 13 of the Social Welfare Act 2001 ( section 11 of the Social Welfare Act 2000 ( section 12 of the Social Welfare Act, 1999 ( No. 3 of 1999 )) of Part II of the Third Schedule to the said Act, hereby makes the following Regulations:

Citation and construction.

1.(1)  These Regulations may be cited as the Social Welfare (Consolidated Payments Provisions) (Amendment) (Capital Assessment and Carers) Regulations 2005.

(2)  These Regulations and the Social Welfare (Consolidated Payments Provisions) Regulations 1994 to 2004 shall be construed together as one and may be cited as the Social Welfare (Consolidated Payments Provisions) Regulations 1994 to 2005.

Commencement.

2.   (1) These Regulations (other than Regulation 7) come into operation

(a)    in so far as they relate to carer's benefit on 7 April 2005,

(b)    in so far as they relate to carer's allowance on 7 April 2005,

(c)    in so far as they relate to unemployment assistance, disability allowance, pre-retirement allowance and farm assist, on 1 June 2005,

(d)    in so far as they relate to unemployment benefit, retirement pension and invalidity pension on 2 June, 2005,

(e)    in so far as they relate to old age (contributory) pension, old age (non-contributory) pensions, blind pension, widow's or widower's (non-contributory) pension, one-parent family payment, orphan's (non-contributory) pension and a relevant payment by virtue of section 18(1)(b) or (c) of the Social Welfare Act 1996 (No. 7 of 1996), on 3 June 2005, and

(f)     in so far as they relate to disability benefit, health and safety benefit, injury benefit and unemployability supplement, on 6 June 2005.

(2)  Regulation 7 comes into operation on 13 April 2005.

Definitions.

3.  In these Regulations “the Principal Regulations” means the Social Welfare (Consolidated Payments Provisions) Regulations 1994 ( S.I. No. 417 of 1994 ).

Assessment of property.

4.  The Principal Regulations are amended in article 6B(1) by substituting the following for paragraph (c) (as amended by article 4 of the Social Welfare (Consolidated Payments Provisions) (Amendment) (No. 12) (Capital Assessment) Regulations 2000 (S.I. 313 of 2000)):

“(c) insofar as it consists of income from property (other than property referred to in paragraph (d) of this sub article) which is invested or otherwise put to profitable use or which, though capable of investment or profitable use, is not invested or put to profitable use, by reference to the weekly value of the property, calculated as follows:

(i)     the first EUR 20,000 of the capital value of the property shall be excluded,

(ii)    the weekly value of so much of the capital value of the property as exceeds EUR 20,000 but does not exceed EUR 30,000 shall be assessed at EUR 1 per each EUR 1,000,

(iii)   the weekly value of so much of the capital value of the property as exceeds EUR 30,000 but does not exceed EUR 40,000 shall be assessed at EUR 2 per each EUR 1,000, and

(iv)   the weekly value of so much of the capital value of the property as exceeds EUR 40,000 shall be assessed at EUR 4 per each EUR 1,000.”

Income disregards - carer's benefit and carer's allowance.

5.  The Principal Regulations are amended -

(a)  in article 35E (amended by article 4 of the Social Welfare (Consolidated Payments Provisions) (Amendment) (Carers) Regulations 2003 (S.I. 121 of 2003) by the substitution in sub-articles (2) and (3) of “ 270” for “150”, and

(b)  in article 89 by substituting the following for sub-article (2):

“(2) (a) The amount prescribed for the purposes of paragraph 8 of Rule 1 of Part II of the Third Schedule to the Principal Act shall be 270 per week.

(b) The amount prescribed for the purposes of paragraph (1B) of Rule 4 of Part II of the Third Schedule to the Principal Act shall be 540 per week.”

Disregard of proceeds from sale of principal residence.

6.  Article 90 of the Principal Regulations is amended by substituting the following for sub-article (3) (inserted by article 3 of the Social Welfare (Consolidated Payments Provisions) (Amendment) (No. 2) (Miscellaneous Provisions) Regulations 2001( S.I. No. 132 of 2001 )):

“(3) The limit prescribed for the purposes of Rule 2A of Part I and Rule 2 of Part II of the Third Schedule to the Principal Act shall be 190,500.”.

Prescribed age for the purposes of benefit and privilege.

7.  Article 90C (amended by article 5 of the Social Welfare (Consolidated Payments Provisions) (Amendment) (No.2) Regulations 2004 ( S.I. No. 125 of 2004 )) of the Principal Regulations is amended by substituting “26” for “27”.

EXPLANATORY NOTE

(This Note is not part of the Instrument and does not purport to be a legal interpretation.)

These regulations provide for the following:

1.  An improvement in the existing method of assessing capital, for the purposes of calculating a spouse's weekly income, in order to determine whether a qualified adult allowance is payable.

The new method of assessment calculates the capital value of property on a weekly basis as follows:

-  the first EUR 20,000 is be disregarded;

-  capital between EUR 20,000 and EUR 30,000 is be assessed at EUR 1 weekly means for each EUR 1,000;

-  capital between EUR 30,000 and EUR 40,000 is be assessed at EUR 2 weekly means per each EUR 1,000;

-  capital above EUR 40,000 is be assessed at EUR 4 weekly means per each EUR 1,000.

2.  Social Welfare legislation currently provides that a person in receipt of Carer's Benefit may engage in employment or self employment outside the home, subject to a maximum of ten hours per week and an income ceiling of EUR 150. Article 5(a) of these regulations increases the income ceiling to EUR 270 per week, effective from 7 April, 2005.

3.  Article 5(b) of these regulations provides for an increase in the income disregarded for the purposes of Carer's Allowance. In the case of a single person, the increase is EUR 120 per week, bringing the total amount of the disregard to EUR 270. In the case of a married person, the disregard is increased by 40 per week, to a new total of 540. These changes take effect from 7 April, 2005.

4.  In addition, article 6 of the regulations provides for rounding up the disregard in respect of the sale of a principal residence to EUR 190,500.

5.  Article 7 of the regulations provides for an improvement in the assessment of Benefit and Privilege (B&P) for unemployment assistance and pre retirement allowance. The assessment of B&P will now be abolished for those aged 26 years and over living in the parental home with effect from 13 April 2005.