Operational Guidelines: Means Assessment

These guidelines provide details of how means are assessed for the following means-tested schemes:

• Jobseeker's Allowance
• Jobseeker's Transitional Payment
• Disability Allowance
• Farm Assist
• State Pension (Non-contributory)
• Blind Pension
• Widow’s, Widower’s and Surviving Civil Partner’s (Non-contributory) Pension
• Guardian’s Payment (Non-Contributory)
• One-Parent Family Payment
• Carer's Allowance

There are separate guidelines on means assessment for Supplementary Welfare Allowance, Working Family Payment and Rent Supplement. Consult the relevant guidelines for scheme-specific rules.

The rules used to calculate means for all other means-tested schemes referred to in these guidelines are set out in:

• Parts 1, 2, 3 and 5 of the Third Schedule of the Social Welfare Consolidation Act 2005 as amended;
• Chapter 6 of Part 3 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (SI 142 of 2007) as amended.

The rules are applied in different ways to the various schemes. Details of how the rules apply to each scheme will be given under the various headings in the document.

Important:

Where a customer is married, in a civil partnership or cohabiting, the means of the spouse, civil partner or cohabitant are taken into account as well as the customer’s own means.

See also separate guidelines regarding:

• Farm Means – Assessment of Income from Farming
• Jobseeker’s Allowance – Income from Insurable Employment
• Jobseeker’s Allowance – Benefit and Privilege
• Jobseeker’s Allowance – Assessment of Spouse/Civil Partner/Cohabitant’s Earnings

Capital and property not personally used or enjoyed

Capital (savings and investments) and the value of property owned but not personally used or enjoyed are assessed as means.

Where capital or property is assessed on this basis, any income received from its use (for example interest on savings, dividends from shares, rent from property let) is not assessed as cash income.

Calculation of weekly value of Capital/Property - general formula

The general formula used to assess the weekly value of capital for all of the schemes covered by these guidelines except for Disability Allowance (and Carer’s Allowance with effect from 2 June 2022) is:

Note: this formula came into operation on various dates between April and June 2005 for all schemes covered by this guideline. It applied to Disability Allowance from April 2005 to end May 2007 and to Carer’s Allowance from April 2005 to 1June 2022.

The current scheme-specific formula used to assess means from capital/property for Disability and Carer’s Allowance schemes follows and is subject to the above effective end dates.

The formula used to assess the weekly value of capital for Disability Allowance and Carer’s Allowance means assessment purposes is effective from June 2007 and 2 June 2022 respectively.

Prior to that, the annual capital disregard of €20,000 applied. Details of the capital assessment rules that applied prior to the reported effective dates are included in archive copies of Guidelines, including the scheme-specific operational guidelines. Members of the public can request an archive copy for a particular year by sending an email to: info@welfare.ie

Earlier Saver Clauses

Saver clauses protected entitlements already in payment or pending decision at the time that the legislation was amended, so that a person with a higher entitlement under the previous formula would remain on that method of calculation. The saver clause ceases to apply when the capital increases.

Capital

This may include:

(a) Savings that have not been invested but are held in cash. A reasonable amount held for current needs can be ignored, but significant savings are assessable as means.

(b) Stocks and shares of every description, which are assessed according to their current market value.

(c) Savings certificates/bonds/national instalment savings, which are assessed according to their current market value.

(d) Money invested in a bank, building society and so on, or money on loan.

Where a customer has an overdraft (for example on a current account) and a deposit account in the same bank, the deposit amount may be reduced by the amount of the overdraft and any credit balance is assessed as capital. Similarly the credit and debit balances in a Credit Union account are offset against one another, and only a net credit figure is assessed. The outstanding balance on a term-loan or mortgage is not offset in this way against savings in the same institution. An overdraft in one bank is not offset against a savings account in a different institution.

Cash out on loan to another person is assessable unless there is no reasonable chance of recovery.

(e) Pension Funds, Trust funds and so on, owned by the customer.

The value of a pension fund is only assessable for means when the customer has access to the fund.

The rules of a pension scheme will determine what benefit is accessible and payable, in various forms, at any given time.

Regular pension payments will be treated as income for means purposes.

The value of any cash otherwise available from a pension fund will be assessed on the basis of the capital valuation of that fund.

A customer should supply the last Annual Benefit Statement provided by the trustees of the pension scheme to the department. This will state the date that the benefits of the pension can be accrued.

Any benefits in the form of regular payments or a lump sum payment will be assessed as means. Where a pension lump sum is received, operational practice is to assess this as capital. The value of any income otherwise invested in a pension fund is assessed on the basis of the capital valuation of that fund. In the case of Approved Minimum Retirement Funds (AMRFs) and vested Personal Retirement Savings Accounts (PRSAs), the per cent of the AMRF or vested PRSA that the customer can access each year is assessable on a capital basis (regardless of whether the customer accesses the per cent or not, as the capital is available to them).

Approved Retirement Funds (ARFs) - including AMRFs which become ARFs when an individual reaches 75 years of age - are fully accessible to the customer. The funds are accordingly fully assessable on a capital basis for social welfare means purposes.

Provisions in the Finance Bill 2021 abolished Approved Minimum Retirement Funds (AMRFs) from 1 January 2022, for conversion to ARFs from that date. Prior to the 1 January 2022, only the percentage of the AMRF that the customer could access each year was assessable on a capital basis, regardless of whether the customer accessed this or not.

Similar to the pension funds above, the terms of the buy-out bond will determine what benefits are payable to the holder of the bond, and when the customer should provide details of the bond to the department in order to prove that they do not have access to any benefits.

Life interest in pension fund only

Doubt arises at times as to whether the customer has ownership of the funds or just a life interest in it i.e. entitlement to periodic payments only. To clarify this, enquire if any amount left in the fund at date of death will revert to his/her estate, or whether the full title of any balance will then pass to another (e.g. the fund holder).

If the customer only has a life interest in the capital, the capital lump sum is not assessed as property. Any periodic payments received are assessed as cash income.

(f) Marketable leases or licences, for example:

• a lease on a shop that is sub-let, or that is lying idle, where that lease has a marketable value
• ownership of ground rents
• ownership of a taxi-plate or of a pub-licence that is not being used personally but is leased to another or is being retained as an investment.

A distinction is drawn between investments of an essentially business nature – as above - and investment in house furnishings, jewellery, etc., which are essentially for personal use or enjoyment and are therefore not assessable.

(g) Property sold where the payments are made on an instalment basis. The amount to be assessed at any time during the period between original agreement and the final payment is the total amount of outstanding payments. The instalment payments made are not assessable as income.

Example:

Original agreement: €30,000 to be paid by 5 instalments of €6,000 per year.

Note: Any other capital held (including the balance on hands from previous payments) should also be assessed.

(h) Withdrawals of capital not accounted for.

Large withdrawals of capital should be investigated. Receipts should be requested to validate large sums spent. See "Property Transfers" below re capital that is transferred to another person. Withdrawals that are not satisfactorily accounted for should be assessed.

Assessing joint accounts

Where an account is held jointly with another person, legally the entire asset is owned by each of the parties, and this is assessable in full against each. An exception to this is where the second party is unaware that his or her name has been added to the account.

In practice, however, consideration should be also given to the following factors and the assessment may be limited where it is considered appropriate to do so.

If both parties are in receipt of, or claiming, means-tested payments, the asset should not be assessed in full against both. Depending on any other relevant factors, it should be assessed against both on a shared basis or against one only.

Where another name is added to the account purely for ease of withdrawal, or so that the second-named party will inherit the money in the event of the death of the owner, and the money cannot be withdrawn on the sole signature of the second party, all of the money may be treated as the property of the main account holder, and no assessment made against the second party. Note: If the other party is also in receipt of a means-tested payment, the relevant file should be checked to ensure consistency of assessment.

Where an account is held in the sole name of a customer, but it is stated that the money belongs to another person, the balance should nevertheless be assessed in full against the customer. If, however, the customer subsequently transfers the account to that other person, such transfer should be accepted unless there is reasonable evidence to prove that the money does actually belong to the customer. (See also paragraph on "Property Transfers.")

In cases where joint account holders have contributed to the funds, or either party may withdraw on his/her sole signature, each should be assessed with an equal share.

Where an account comes to light after the death of the customer, it should be assessed in full against the customer unless there is reason to believe that the funds were contributed to in part by the other party, and/or the other party operated the account on his or her own behalf.

Assessment of second properties

Property covered by the capital investment rule includes second houses and/or any other buildings or land owned but not personally used or enjoyed as the principal residence or farming business.

The house in which a customer resides – their principal residence or home - together with furniture and personal effects, is not assessed.

Property must be capable of being sold, let or put to profitable use before a capital value assessment is applied.

The most common example is where a customer owns a second house. If the house is let, the owner is assessed with the capital value of the property, and not with the income from the letting i.e. the rental income.

Similarly, the market value of leases and ground rents is assessed as capital; the rental income is not assessed.

Any outstanding mortgage registered against the property is deducted from the market value.

Establishing the market value of a property

The current market value (CMV) of a property is considered to be what the market will bear, not what the customer is willing to sell the property for.

In establishing the current market value of a property one of the following approaches should be taken:

i. Receipt of a reasonable valuation from a registered auctioneer on headed paper, with reference to the purchase price and date of purchase of the property

ii. Agree a valuation with a customer with reference to independent property websites or property supplements.

Where means from other sources clearly exceed the qualifying limit, it will be unnecessary to seek official valuation, and an estimate of the value may be accepted.

Property outside the State should be valued according to the best available evidence, if possible from a property tax return or an auctioneer’s statement.

Assessing Land Let for short periods – Capital rules apply

Note: Land let for short periods such as on the eleven months system is regarded as remaining under the control of the owner and the means are taken as the profits from the letting rather than the capital value of the land. (See “Letting of farms”.)

Property personally used or enjoyed

Property which is personally used or enjoyed by a customer is assessed on the yearly income derived by a customer from its profitable use. This includes:

• a farm of land owned or leased.
• a house partly lived in and partly let.
• accommodation provided under the terms of a will or deed of transfer.

Means From Farming

A customer is assessed with the prospective income from the farm in the next 12 months. In most cases the figures for the last 12 months can be used for this purpose. If there has been a major change in stock levels or in method of farming, an estimation will need to be made on the best available evidence.

The yearly value (or net profit) is calculated by deducting all necessary expenses from the gross income.

The investigating officer will complete a form (IN93) giving details of income and expenditure from the farm and the Deciding Officer will issue a copy of this form to the customer with the decision. (See separate guideline "Farm Means – Assessment of Income from Farming” for more detail)

Letting of farms

The income from land let, sub-let or leased is assessed as follows:

Where a customer is the lessor/owner of a farm of land (including an eleven months letting, letting on conacre, letting in agistment) the value of the property is not assessed as capital but the yearly value of any advantage accruing from that leased land is assessed.

Necessary expenses actually incurred by the owner (e.g. fencing or fertilising between lettings) may be deducted from the gross rent received.

Where a customer is the owner or tenant of a farm of land and lets or sub-lets the farm to another person due to illness or old age and receives part of the rent in kind instead of cash, the total benefit from the holding should be assessed.

Example: Assessing customer’s means from leasing a farm of land valued at €200,000

The total benefit of the holding for that particular year of €4,500 is assessed.

Apportioning farm income in intestacy cases

Where a land owner dies without making a will (intestate), legal entitlement to the land is divided between his/her family in the following manner: a two-thirds share is granted to the surviving spouse, civil partner or co-habitant and the remaining one-third is divided equally amongst the other members of the immediate family.

However, the assessment of means will normally reflect the actual extent to which the customer benefits from the income of the holding, rather than the strictly legal entitlement, as follows.

Where the:

1. beneficiaries exercise their right to divide the land and work their portion separately for their own gain, the net profit from the person’s portion of the land will be assessed as means.

2. Where the client is in sole control of running the holding, s/he will be assessed with the net profit, making allowances for any wages or maintenance supplied to other members of the family who work thereon, or payments made to them in respect of their intestacy interest.

3. Where the client is involved in running the holding jointly with another relative, the profits will be divided proportionately between them.

4. If the holding is in the sole control of a parent in Jobseeker’s Allowance cases benefit and privilege will be assessed in accordance with the relevant guidelines (see "Jobseeker's Allowance - Benefit and Privilege" ).

Note: If the customer does not reside on the holding, s/he should not be assessed with any benefit from his/her intestacy interest unless s/he is receiving a payment from the person running the holding.

Farms Kept Below Potential Income

If the income from a farm is deliberately kept below the potential income in order that a customer will qualify for a pension/allowance or a pension/allowance at a higher rate, the customer is deemed to have deprived her/himself of income and so the potential income is assessable against the customer.

Property partly used by owner-occupier

The income from renting a room in an owner-occupied property can qualify for a maximum disregard of up to €269.23 weekly from means assessment from 12 July 2022 on, subject to two conditions (S.I. 160 of 2023 refers).

The room(s) must be legally rented as living accommodation for 28 consecutive days or more, to tenants other than immediate family members or employees. Only the gross weekly rental amount is disregarded, all contributions to household costs are assessed as income (Section 2, Income Excluded also refers and identifies other statutory accommodation support payments that qualify for exclusion from means assessment for all schemes covered by these guidelines).

For the purposes of the disregard, owner occupied property is taken to include a property which:

• is owned and personally used and enjoyed by the person as his or her sole or main residence

Or

• is owned and was personally used and enjoyed by the person as his or her sole or main residence immediately prior to moving out of his or her home under the Nursing Homes Support Scheme, effective as of 1 February 2024

Or

• is held under a Local Authority tenancy agreement and is personally used and enjoyed by the tenant as his or her sole or main residence, while he or she is a participant in a scheme administered by the Minister for Housing, Local Government and Heritage, and known as the Room for a Student – Local Authority Scheme, effective as of 1 December 2023.

Otherwise, any cash income from letting out a portion of a house that is not personally used or enjoyed by the owner-occupier is assessable as income. For example, a room might be rented on an occasional basis to ‘Air B n B’ customers, or for temporary use as a business office.

If a portion of the house is being let and does not qualify for the statutory rental disregard

the following deductions from gross income may apply to establish the net figure for the means assessment:

1. the proportion of ground rent and mortgage interest payments that are attributable to the area rented, not the full mortgage/loan repayments payable.

2. If rooms are let furnished, 5% of the gross amount received is allowed for wear and tear.

3. A discretionary amount of up to 15% of the gross receipts may be allowed for voids (periods when the accommodation is vacant between lettings).

Owner-occupier disregards exclusive to customers of Non-Contributory Pensions

A person in receipt of a State Pension Non-Contributory or Widows, Widowers or Surviving Civil Partners Non-Contributory Pension, who rents a room in their residence, will have that rental income excluded from a means assessment, where but for that tenancy, the customer would live alone.

These disregards are provided by way of Rule 1(2)(b)(iv) of Part 3 of Schedule 3 of the Social Welfare Consolidation Act 2005 (as amended) (SWCA 05) and Rule 1(2)(b)(v) of Part 5 of Schedule 3 of SWCA 05.

Property Vacated because of Old Age or Illness

Where a customer leaves his/her home on a temporary basis, or for an indefinite period as a result of old age or illness, the capital value of his/her home is not assessed as means unless it is put to profitable use. If it is put to profitable use (for example, rented out) then the capital value of the house is assessed as means.

Note: A house in this case could include a dwelling house, a flat or an apartment which is, or has been occupied by the customer as his/her main residence, or land or gardens with that residence up to and including one acre in size, which the customer used for his/her own enjoyment.

Property Offered for Sale

Where a customer has offered his/her home for sale, the value of the property is not assessed as means for a period of not more than two years from the date on which the property was first vacated. If the property remains unsold after the two years, the normal capital value is assessed thereafter.

Note: Following the sale, the capital is assessed as normal except for the provisions of the next section, “Exemption of proceeds from the sale of a customer's principal residence from the means test”.

Where a customer has sold his/her residence and is holding the money pending completion of the purchase of another property, a Deciding Officer may decide not to assess the capital for a temporary period and review in 3-6 months to confirm that the purchase was completed.

Exemption of the proceeds from the sale of a customer's principal residence from the means test

For payments where an exemption applies, where a customer sells his/her principal residence, the amount exempted from the gross proceeds of that sale will increase from €190,500 to €337,500 from 1 January, 2025.

To whom does the exemption apply?

Originally, the exemption applied only to people aged 66 or over who were in receipt of:

• State Pension and/or a spouse, civil partner, or co-habitant of that pensioner, also aged 66 or over
• Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension
• and predecessor forms of the One-Parent Family Payment* paid to persons over 66.
• These included Deserted Wife’s Allowance, Prisoner’s Wife’s Allowance and Lone Parents Allowance, now all subsumed into the OPF payment.

Note: A spouse, civil partner or co-habitant aged 66 or over, of a customer in receipt of a State Pension (Non-Contributory) payment, may also avail of this exemption.

In 2001, the exemption was extended to people under 66 years of age who are getting either Disability Allowance or Blind Person’s Pension.

In what circumstances does the exemption apply?

The residence must have been sold so as to enable the customer to:

1. Purchase or rent alternative accommodation, which s/he occupies as his/her only or main residence or

2. Move into a private nursing home registered under Section 4, Health (Nursing Homes) Acts 1990 or

3. Move in with a sole carer of the pensioner in receipt of Carer’s Allowance or Carer’s Benefit for the caree or

4. Move to sheltered or communal residential housing provided by an approved housing authority under the Housing Miscellaneous Provisions Act 1992. Link here to the 1992 Act and here to the Approved Housing Bodies Register - Approved Housing Bodies Regulatory Authority (ahbregulator.ie).

How does the exemption work?

The gross proceeds derived from the sale of the principal residence are defined as meaning either -

• the agreed sale price of the residence or
• where alternative accommodation is being purchased, the difference between the agreed sale price of the former residence and the agreed purchase price of the replacement residence

In either of the cases above a maximum exemption amount of €337,500 applies from 1 January, 2025 while an exemption of €190,500 applies up to January 2025..

Note: The amount of the exemption may not be reduced by reference to solicitor’s fees, auctioneer’s fees etc. or to other expenses incurred.

From 1 January 2025

Example 1

A customer sells his/her house for €200,000 and buys alternative accommodation for €150,000. In these circumstances, the balance of €50,000 is not counted as means as it is below the limit of €337,500.

Example 2

A customer sells his/her house for €550,000 and buys alternative accommodation for €200,000 leaving a balance of €350,000. In these circumstances, only a sum of €12,500 (i.e. €350,000 less €337,500) is assessed as means.

Investment income from sale proceeds

Any benefit received from investing the sale proceeds is assessable as means. Interest which is retained as capital is assessed in the same way as normal.

However, allowance should be made where a customer has significant maintenance expenses, such as nursing home costs, which are met out of interest payments. In such cases, only the interest on the exempted capital up to the maximum amounts set out above may be disregarded as means.

Property Transfers

When Are Transfers Accepted?

(i) Transfer of a Farm or Business

A transfer is generally accepted where the farm or business is transferred due to advanced age and/or failing health of the customer or where the transfer is considered to be part of a genuine family settlement. Cases of doubt arise where the customer transfers the farm or business to an elderly person, a juvenile or a relative (or other person) who resides outside the State or is otherwise effectively removed from the enterprise.

In the case of farms the investigating officer should ascertain whether the farmer has in reality transferred effective control of the holding including herd/flock number, etc.

A copy of the Deed of Assignment or Transfer is required. An Inspector may accept a deed of transfer that has been certified by the solicitor as having been lodged for stamping with the Land Registry.

Note: If the deed of transfer reserves a right to be “supported and maintained in the manner to which he or she is accustomed” (or similar wording), and these terms are being honoured, Free Fuel allowance is not payable.

(ii) Capital

It is more difficult when it comes to accepting the transfer of large sums of capital. However, the Deciding Officer may accept the transfer where s/he is satisfied, to the extent that this is possible, that the customer transferred the money to relatives/friends (1) in order to make provision for his/her care, or (2) where the transfer was a genuine settlement due to advanced age and/or illness.

Where an assessment includes transferred capital, there must be at least a prima facie case for believing that the reason for the transfer was in order to qualify for pension, benefit or allowance, or for a higher rate thereof.

Deprivation of Capital

Where it appears that a customer has either directly or indirectly deprived themselves of any income or property in order to qualify for a payment, or to qualify for a payment at a higher rate, the income or the yearly value of the property must be assessed as means against the customer.

In such cases, where the yearly value of the property or income has decreased since the date of deprival or transfer, account shall be taken of this decrease. In a case where the value of the property or income has increased since the date of deprival or transfer, the means assessed will not take account of this increase.

Summary

All cash income to the customer (and, where relevant, to the customer's spouse, civil partner or cohabitant) is assessed except for specific exclusions as set out below. The assessment must reflect the income the customer may reasonably be expected to receive during the coming 12 months. Where this is not ascertainable otherwise, the income for the last 12 months should be taken as a guide, allowing for any factors which it is known will vary.

In Jobseeker’s Allowance, Disability Allowance and Farm Assist cases, monies received by a customer or their spouse, civil partner or cohabitant whether as contributions towards the expenses of the household or otherwise are included in the assessment of means. These will ordinarily be payments made by members of the household as contributions to household expenses. Money sent home by absent members of the family or relatives must also be included. Where, however, board and lodgings or other benefits in kind are provided by the customer or spouse, civil partner or cohabitant in return for the contributions referred to, the cost of such benefits is to be deducted from the amount of the contribution.

Income Excluded

The following exclusions apply to all Schemes covered by this guideline:

• Income (e.g. rent) from property which has been assessed on the basis of its capital value (i.e. the market value of property not personally used or enjoyed);
• Any payment made by the Department of Social Protection, including Supplementary Welfare Allowance;

Note 1: the COVID-19 Pandemic Unemployment Payment (section 202 form) and the COVID-19 Pandemic Unemployment Payment, including where paid to existing qualified adults, come within the scope of these excluded income rules, with effect from 1 April 2021.

Note 2: income received from Community Employment (CE), TÚS, Rural Social Scheme and Gateway placements is not excluded. For guidance on the treatment of CE income where CE commenced on or after the 1 of January 2023, please see Additional items that do not count as means for Jobseeker’s Allowance.

Note 3: social security payments from the UK, or another EU Member State, that are deemed equivalent to an Irish Social Welfare payment, in accordance with Article 5 of Regulation 883 of 2004, may be treated in the same manner as the equivalent Irish Social Welfare payment. It is important to note that such payments may only be considered equivalent when their purpose and objective as well as the basis on which they are calculated and the conditions for granting them are the same.

Regulation 883 of 2004 however also provides that the equal treatment provisions shall be proportionate and shall not result in overlapping payments where the national legislation of a Member State does not provide for such overlapping payments.

• Payments from the Health Service Executive (HSE), Túsla or their appointed Agents (including ‘Section 38’ agencies) for the:

- Home Care Grant package under the HSE scheme

- Mobility Allowance payment (any amount)

- Boarding out costs for up to 2 HSE clients in a private dwelling, up to a maximum level of the weekly personal SPNC rate

- Túsla Fostercare Allowance

- Túsla Aftercare Allowance when paid to foster carers only

- a child who is homeless, under section 5 of the Child Care Act 1991

- Túsla Educational Support for Children in Care and Aftercare Bursary scheme, payable to young adults aged 18 to 30 years old;

• Any blind welfare allowance or grant payment provided for under section 2 of the Blind Persons Act 1920;
• Any allowance under the Home Tuition Scheme administered by the Department of Education;
• 1916 Bursary Fund payments administered by the Department of Further and Higher Education, Research, Innovation and Science;
• Any amount of a University Higher Educational Scholarships for Adult Learners up to a maximum of €7,000 per annum;
• Any payments of a Special Transport Grant made by the Minister for Education under the School Transport Scheme for Children with Special Educational Needs;
• Grants to parents of children attending primary school in Gaeltacht areas, and income from providing accommodation to students studying Irish in Gaeltacht areas;
• Any amount of training allowance received for participation in a rehabilitation training course approved by the Minister for Health;
• Any payments made from the KickStart Scholarship Fund administered by the Probation Service;
• Any payment to a spouse, civil partner or cohabitant in respect of:

- Back to Work Allowance,

- Back to Work Enterprise Allowance,

- Back to Education Allowance,

- Part-Time Job Incentive,

- or the national internship scheme

- an approved course of training provided by or on behalf of Solas or an Education and Training Board

- VTOS.

• Compensation awards, together with any subsequent income from the investment of that money, awarded by

- the Hepatitis C Compensation Tribunal 1995, the Hepatitis C and HIV Compensation Tribunals 2002, Court awards for persons who contracted Hepatitis C or HIV from contaminated blood products

- Health authorities to persons who have a disability caused by Thalidomide

- The Residential Institutions Redress Board.

- made under the Nursing Home Repayments scheme from the HSE for repayment of overcharged fees.

This exclusion does not apply to the beneficiaries of the clients’ estates.

• Ex gratia payments, together with any subsequent income from investment of that money,

- for the benefit of women who worked in the Magdalen Laundries, in accordance with the Magdalen Commission Report 2013

- from the Lourdes Hospital Redress Board/Scheme established by the Minister for Health

- made under the Surgical Symphysiotomy Scheme / Symphysiotomy Payment Scheme.

- from the Residential Institutions Statutory Fund Board.

• Other ex gratia scheme payments of compensation

- for Personal Injuries suffered at the Stardust

- made in accordance with the Scoping Inquiry into the CervicalCheck Screening

- made under the package of support measures for women diagnosed with cervical cancer since 2008

- from the Northern Ireland Victim and Survivor Service (VSS);

- for persons who suffered harm whilst in the care of Kerry Child and Adolescent Mental Health Service (CAMHS).

• Any income derived from The Troubles Permanent Disablement Payment Scheme (Northern Ireland regulations 2020).
• €104 per year from an allowance, dependants' allowance, disability or wound pension under the Army Pensions Act, 1923 to 1980 (including a British War Pension), or a combination of such allowances and pensions;
• Payments received under the European Communities (Birds and Natural Habitats) Regulations 2011 compensation scheme for those affected by the cessation of turf cutting on raised bog special areas of conservation;
• Income from non-profit making charitable organisations. Please find the full list of Charitable Bodies here.
• Any payments made by Sport Ireland under the International Carding Scheme.
• A rental income disregard of up to a maximum of €269.23 per week will apply to an owner-occupier’s means assessment, where the room(s) is rented as living accommodation for at least 28 consecutive days to person(s) other than immediate family members or employees, effective from 12 July 2022.
• Disregard of the Accommodation Recognition Payment of €800 per month received for hosting temporary protection beneficiaries who are not in receipt of a housing support payment from the Department, or others, with similar effect, Previously this was €400 up until November 2022 when the ARP payment was increased.
• A scholarship payment to a maximum of €7000.00 per annum paid by UCD’s Cothrom na Féine Scholarship Programme to a person will be disregarded in the means test for social assistance payments, increases for qualified adults and the Working Family Payment.
• Any payment made under the Mother and Baby Institutions Payment Scheme, established under section 5 of the Mother and Baby Institutions Payment Scheme Act 2023 (No. 20 of 2023).
• Any payment made under the scheme operated by the State Claims Agency, known as the ‘Ex gratia scheme – Implementation of the ECtHR (European Court of Human Rights) Judgement in O’Keeffe v Ireland’.
• An amount up to a maximum of €7,000 per annum from payments made by the Department of Further and Higher Education, Research, Innovation and Science’s Student Accommodation Assistance Fund
• An amount up to a maximum of €7,000 per annum from payments made by Co-operative Housing Ireland’s Scholarship Programme.

Additional items that do not count as means for Jobseeker’s Allowance, Disability Allowance and Farm Assist

• The maintenance portion of a SUSI Higher Education Maintenance Grant
• One half of the first €153 per annum and one third of the next €228 per annum of a customer’s or spouse, civil partner or cohabitant’s income derived from seasonal fishing (any portion of the income exceeding €381 is assessed in full). Seasonal fishing usually refers to salmon, lobster, oyster or mussel fishing

Additional items that do not count as means for Jobseeker’s Allowance

• €2,540 per year of income under the Basic Farm Payment scheme operated by the Dept. of Agriculture, Food and the Marine (DAFM)) (effective from 03/04/1996). 50% per year of income above €2,540 and all expenses necessarily incurred under this scheme is also excluded (effective from 01/04/1998).
• A list of agri-environmental schemes with statutory provision for means disregard are included in the Appendix.
• from the 1st of January 2023, where a spouse, civil partner or cohabitant of a JA customer commences a Community Employment (CE) Scheme, the payment received from the CE scheme shall be calculated at half value, and any increase for qualified children portion of that CE payment shall be disregarded

Additional items that do not count as means for Disability Allowance

• Ex gratia payments made by the State Claims Agency for claims in respect of the Pandemrix vaccine settled on or after 1 October 2020
• Any amount of a bursary, scholarship or stipend awarded for completion of Doctoral Degree studies at an approved institution up to a maximum of €20,000 per year, for not more than four years (effective from 01/09/2020).

Additional items that do not count as means for Farm Assist

• €2,540 per year of income under the DAFM Basic Farm Payment scheme (effective from 03/04/1996)
• 50% per year of income above €2,540 and all expenses necessarily incurred under the DAFM scheme is also excluded (effective from 01/04/1998)
• Up to €1,270 per year earned from the collection of seaweed.
• A list of agri-environmental schemes with statutory provision for means disregard are included in the Appendix.

For further detail, please see separate guidelines on “Farm Means – Assessment of Income from Farming” and "Farm Assist".

Additional items that do not count as means for the State Pension (Non-Contributory)

• Any payment under the EU Early Retirement Scheme from Farming.
• Any money received in respect of rent from a person who lives with the pensioner, and but for that person the pensioner would be residing alone.
• €2,540 per year of income under the DAFM Basic Farm Income scheme. (This provision came into effect on 03/04/1996); 50% per year of income above €2,540 and all expenses necessarily incurred under the DAFM scheme is also excluded. (This provision came into effect on 01/04/1998). See also separate guideline on “Farm Means – Assessment of Income from Farming” for further detail.
• Total amount of an allowance, special allowance, dependant’s allowance, disability pension or wound pension under the Army Pensions Acts 1923 to 1980 or a pension under the Military Service (Pensions) Acts 1924 to 1964 in respect of service in the period from 23 April 1916 to 30 September 1923.
• Total amount of any pension under the Connaught Rangers (Pensions) Acts 1936 to 1964.
• A list of agri-environmental schemes with statutory provision for means disregard are included in the Appendix.

With effect from 7 April 1999, any customer transferring direct to the (then) Old Age (Non-Contributory) Pension from Farm Assist retained the assessment of income appropriate to that scheme, if the rate payable was greater than the then OAP. This provision was extended to Blind Pension, Widow’s, Widower’s or Surviving Civil Partner’s (Non–Contributory) Pension (formerly the Widow/er’s Non-Contributory Pension), One-Parent Family Payment (OFP) and Deserted Wife’s Allowance on the introduction of the State Pension (Non-Contributory) on September 29, 2006.

Additional items that do not count as means for One-Parent Family Payment, Carer’s Allowance, Widow, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension and Blind Pension

• Total amount of an allowance, special allowance, dependant’s allowance, disability pension or wound pension under the Army Pensions Acts 1923 1980 or a pension under the Military Service (Pensions) Acts 1924 to 1964 in respect of service in the period from 23 April 1916 to 30 September 1923.
• Total amount of any pension under the Connaught Rangers (Pensions) Acts 1936 to 1964.

Additional item that does not count as means for One-Parent Family Payment

• The maintenance portion of a SUSI Higher Education Maintenance Grant.

Additional items that do not count as means for Carer’s Allowance

• See ‘Assessment of income’ section in the Operational Guidelines: Carer's Allowance.

Additional items that do not count as means for Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension

• From 1 April, 1998, any money received in respect of rent from a person who lives with the pensioner, where but for that tenancy, the pensioner would be otherwise considered as residing alone.

Additional items that do not count as means for Blind Person’s Pension

• The maintenance portion of a SUSI Higher Education Maintenance Grant.
• Any amount of a bursary, scholarship or stipend awarded for completion of Doctoral Degree studies at an approved institution up to a maximum of €20,000 per year, for not more than four years (effective from January 2022).

Assessment of earnings

Insurable Employment - Customer

Jobseeker’s Allowance

The rules for assessing earnings changed on 26 September 2007. Since then the following rules apply:

1. Assessable income or ‘net earnings’ is gross earnings less deductions for PRSI, superannuation (including AVCs and PRSAs to an occupational pension) and union dues.

2. A family rate less means applies. The family rate is based on a personal rate, a full qualified adult rate and full qualified child rate less means.

A disregard to €20.00 a day for each day worked by the customer up to a maximum of 3 days each week applies (max €60.00 a week). Means are calculated as follows: assessable income less the relevant disregards and the balance is assessed at 60%. In the case of a couple, both of the couple are assessed in exactly the same manner, assessable income less the relevant disregards and 60% of the balance is assessed.

See separate guidelines for “Jobseeker’s Allowance – Income from Insurable employment” for more specific details.

The income assessment rules above changed in 2007. Prior to that different rules applied for customers with child dependants as compared to those without child dependants. The pre-2007 rules are included in archive copies of published Guidelines. Members of the public can request an archive copy for a particular year by sending an email to: info@welfare.ie

Farm Assist

• The arrangements are identical to Jobseeker’s Allowance - see separate guideline for “Jobseeker’s Allowance – Income from Insurable employment”.
• Income from insurable employment of a seasonal nature where the employment has ceased is not assessed. (Case is reviewed when the season recommences).

Disability Allowance

• From 4th January 2023, the first €165 of net weekly earnings from employment is disregarded, together with half of any additional earnings up to €375 per week. The tapering provisions were introduced with effect from 7/6/2006. (If a person has earnings of €500 a week, the first €165 is disregarded, the next €210 is assessed at 50%, and the remaining €125 is fully assessable €1 for €1).
• Net earnings are gross earnings less PRSI, Superannuation/PRSA/AVC contributions, union dues and reasonable travel expenses.
• Details of earlier disregards are available in the parent guideline (DA) or archive copies of this Guideline on request.

State Pension (Non-Contributory)

• The first €200 of net weekly earnings from employment is disregarded.
• Net earnings are gross earnings less PRSI, Superannuation/PRSA/AVC contributions and union dues.

One-Parent Family Payment

From the 05 April 2021, the former upper employment income limit of €425.00 for the One-Parent Family Payment scheme no longer applied. This means where a customer is parenting alone and their gross wage is over €425.00, they will be eligible to make an application for One-Parent Family Payment.

Earnings Disregards

• Each successive Budget after January 2017 increased the weekly earnings disregard up to the current level of €165 per week (effective from the 6 of January 2020).
• See separate guideline for "One-Parent Family Payment" for more specific detail on changes to weekly disregards, amongst others.

Carer’s Allowance

• The carer is allowed to work up to a maximum of 18.5 hours a week provided that adequate arrangements are made for the care of the person who requires full-time care and attention in the absence of the carer.

There are no specific earnings disregards in respect of employment prescribed in legislation. See section on income assessment in Carer’s Allowance operational guidelines for more detail.

Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension

• The first €100 of net weekly earnings from employment is disregarded.
• Net earnings are gross earnings less PRSI, Superannuation/PRSA/AVC contributions and union dues.

Blind Pensioners

• From 6th January 2023, the first €165 of net weekly earnings from employment is disregarded, together with half of any additional earnings up to €375 per week. (If a person has earnings of €500 a week, the first €165 is disregarded, the next €210 is assessed at 50%, and the remaining €125 is fully assessable €1 for €1).
• Net earnings are gross earnings less PRSI, Superannuation/PRSA/AVC contributions and union dues.

Insurable Employment - Spouse, Civil Partner or Cohabitant

Jobseeker’s Allowance, Farm Assist and Disability Allowance

From 26 September 2007, the rules for assessing the income of a couple were changed.

Under the current rules, assessable earnings of the spouse, civil partner or cohabitant are calculated as the gross earnings less PRSI, Superannuation (PRSA, AVC) and Trade Union Subscriptions.

(Deductions in respect of income tax and Health Insurance premiums e.g. VHI or similar health insurance premiums, Hospital Saturday Fund etc. or any travel expenses are no longer disregarded from 26 September 2007.)

Earnings from insurable employment are assessed as means using the following method:

A family rate less means applies. The family rate is based on a personal rate, a full qualified adult rate and full qualified child rate less means. If the customer has a spouse, civil partner or cohabitant in employment a disregard of €20.00 a day also applies to the spouse, civil partner or cohabitant for a maximum of 3 days a week (maximum €60.00 a week) and the balance is assessed at 60%.

See separate guideline for "Jobseeker’s Allowance – Assessment of Spouse/Civil Partner/Cohabitant’s Earnings".

The above income assessment rules changed in 2007. The pre-2007 rules are included in archive copies of published Guidelines. Members of the public can request an archive copy for a particular year by sending an email to: info@welfare.ie

State Pension (Non-Contributory)

• The first €200 of net weekly earnings from employment is disregarded.
• Net earnings are gross earnings less PRSI, Superannuation /PRSA/AVC contributions and union dues. |

Carer’s Allowance

• There is no specific earnings disregard in respect of employment by a spouse, civil partner or cohabitant. Please refer to the means disregard for this allowance above.

Blind Pensioners

• There is no specific earnings disregard in respect of employment by a spouse, civil partner or cohabitant.

Self-Employment – Customer

All Schemes

In self-employment cases the income is taken to be the gross profit less allowable work related expenses, but not drawings. Where the customer has taken “drawings” from the business which are greater than the level of income thus calculated, the drawings are assessed as cash income.

All expenses directly related to the self-employment can be offset against income from self-employment. However, there is no exhaustive list of all expenses allowed since expenses vary with the nature and extent of the self-employment.

The following are the main allowable expenses in most instances:

• Materials (supplies costs)
• Motor running costs (portion applicable to business)
• Depreciation of machinery or equipment
• Insurance relating to the business
• Telephone (portion applicable to business)
• Lighting and Heating (for business and not domestic use)
• Advertising
• Bank Charges
• Stationery
• Van Leasing
• Labour Costs
• Pension plan
• Any other costs associated with running the business.
• Class S PRSI contributions (where paid or payable). (Note if payable but not being paid, a separate report should be made by the Social Welfare Investigator on this aspect.)

Note: Household running costs are not allowed as deductions against business profit.

Disability Allowance

• From 4th January 2023 the first €165 of net weekly earnings from self-employment is disregarded, together with half of any additional earnings up to €375 per week. (If a person has earnings of €500 a week, the first €165 is disregarded, the next €210 is assessed at 50%, and the remaining €125 is fully assessable €1 for €1).
• Net earnings are gross earnings less PRSI, Superannuation/PRSA/AVC contributions, union dues and reasonable travel expenses.

Farm Assist

• See “Farm Assist” Guidelines for further details.

One-Parent Family Payment (OFP)

• From the 05 April 2021, the former upper employment income limit of €425.00 for the One-Parent Family Payment scheme no longer applied. This means where a customer is parenting alone and their gross earnings from self-employment exceed €425.00 weekly, they will still be eligible to make an application for One-Parent Family Payment.

Earnings Disregards

• Successive Budgets from January 2017 to 2020 have increased the weekly earnings disregard up to the current level of €165 per week, with half the balance then assessed as means.
• From 5 January 2012 the transitional payment of half of the rate of an OFP where the recipient’s earnings exceed €425 per week was discontinued. Recipients of this payment prior to 5 January 2012 will not be affected.
• Please see separate guideline on "One-Parent Family Payment".

State Pension (Non-Contributory)

• €133 per annum in respect of each qualified child (where appropriate note only one deduction is allowed per child where each of the couple are self-employed).

Blind Pensioners

• From 6th January 2023 the first €165 of net weekly earnings from self-employment is disregarded, together with half of any additional earnings up to €375 per week. (If a person has earnings of €500 a week, the first €165 is disregarded, the next €210 is assessed at 50%, and the remaining €125 is fully assessable €1 for €1).
• Net earnings are gross earnings less PRSI, Superannuation/PRSA/AVC contributions and union dues.

Self-Employment - Spouse, Civil Partner or Cohabitant

• There are no specific disregards where the spouse, civil partner or cohabitant is self-employed, however, the arrangements outlined above apply. (See list of allowable expenses.)

Assessment of Maintenance

This subsection explains how maintenance payments are assessed for the purposes of determining entitlement to:

• Jobseeker’s Allowance
• Jobseeker’s Transitional Payment
• Farm Assist
• Disability Allowance
• State Pension (Non-Contributory)
• Blind Pension
• Widow’s, Widower’s and Surviving Civil Partner’s (Non-Contributory) Pension
• Guardian’s Payment (Non-Contributory)
• One Parent Family Payment
• Supplementary Welfare Allowance
• Carer's Allowance

The effective dates for this method of assessment started at end April 2003 / early May 2003. The method of assessment varied from scheme to scheme prior to that. The historical information is included in archive copies of published Guidelines. Members of the public can request an archive copy for a particular year by sending an email to: info@welfare.ie

For the purposes of all the above mentioned schemes, if a customer is living apart from his/her spouse, civil partner or cohabitant and s/he is in receipt of maintenance payments from that person, only those payments which are not paid in respect of children are assessed as means.

From June 2024 , maintenance payments paid in respect qualified children are not longer assessable and are excluded from being assessed as means.

Maintenance from more than one person will be added, and continue to be assessed where it is not being paid in respect of children.

Where a customer is co-habiting and his/her partner is in receipt of maintenance, this maintenance will continue to be assessable unless it is paid in respect of children of the customer’s co-habitant/partner.

Assessing maintenance in the form of non-cash benefits

Any form of maintenance paid to or on behalf of customers, whether by way of a formal or an informal arrangement, or procured by Court Order or otherwise, is assessable as means unless the maintenance is in respect of the children.

Mortgage/rent

For example, where a customer is living apart from his/her spouse, civil partner or cohabitant and in addition to or instead of maintenance payments in cash:

i. the spouse, civil partner or cohabitant is paying the mortgage/rent directly to the lending institution/landlord, or

ii. the spouse, civil partner or cohabitant, in keeping with the terms of a court order or a legal agreement with the person, pays a specific amount to the person to fund mortgage repayments/rent, or

iii. the customer, in keeping with an oral agreement between the parties, can produce documentary proof of regular mortgage/rent payments,

these payments are considered non-cash benefits and should be treated as a maintenance payment in the normal way. The net cash value of the payment is calculated for assessment.

In assessing the means, the housing costs actually incurred by the customer (e.g. rent or mortgage payments and/or repayments of a home improvement loan) up to a maximum of €95.23 per week may be offset against the maintenance payment, with half the balance of any remaining amount being assessed as means in the calculation of the scheme rate payable for any of the schemes mentioned at the outset.

• The allowance for housing costs and the assessment of half the remaining balance does not apply to Supplementary Welfare Allowance, Guardian’s Payment (Non-Contributory), or Carer's Allowance. For these schemes, maintenance payments received are assessed in full as income.

The term ‘housing costs actually incurred’ refers solely to money paid for customer’s regular rent or mortgage payments and/or repayments of a home improvement loan, payable in respect of the principal place of residence only.

If the customer receives a social housing support for example a Rent Supplement or tenancy under the Rental Accommodation Scheme (RAS) or Housing Assistance Payment (HAP) scheme, the direct, out-of-pocket contribution the customer pays towards the overall rent is taken as the accrued housing costs for disregard in these circumstances.

Evidence of the housing costs such as the rent receipt from the Landlord, or mortgage and/or home loan repayments must be provided.

Example 1

For the purposes of Jobseeker's Allowance, Farm Assist and PRETA the means as assessed are rounded to the nearest Euro.

Example 2

Maintenance paid to or in respect of a child who has a means-tested social welfare claim in his/her own right

Where a qualified child reaches 18 years of age and claims Jobseeker’s Allowance in his/her own right, any maintenance that continues to be paid to the parent in respect of the child will become assessable income for benefit and privilege purposes as the child is no longer a qualified child.

As of 5 June, in Disability Allowance cases, where the child qualifies for payment in his/her own right, any maintenance he/she receives in respect of themselves is assessable as means. Only maintenance in paid is respect of a qualified child is non assessable income.

Saver Clause

Where a customer was in receipt of or entitled to any of the payments as listed below immediately before the relevant effective date in late April 2003 / early May 2003, and the new method of assessment is less favourable, they may continue to be paid on the basis of the assessment that pertained prior to the relevant effective date.

Where a saver has been applied, it may continue to be applied if the customer does not break the continuity of his/her entitlement to any of the payments below for 52 consecutive weeks any time after the effective date. In effect this means a customer who has been saved on one scheme and then transfers to another of the schemes within 52 weeks, the saver may continue to be applied.

Note: For the purposes of the Saver Clause the following are the payments that satisfy continuity:

• Jobseeker’s Allowance,
• Farm Assist,
• Disability Allowance,
• State Pension (Non-Contributory),
• Blind Pension,
• Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension,
• Guardian’s Payment (Non-Contributory), and
• One-Parent Family Payment.

Details of pre 2003 rules for assessing maintenance payments received in respect of a child, now a customer in his/her own right are included in archive copies of this Guideline. Members of the public can request an archive copy for a particular year by sending an email to: info@welfare.ie

Deprivation of income

(This provision relates to all schemes. See also section on “Property Transfers” above.)

In any case where a customer or his/her spouse, civil partner or cohabitant has deliberately, either directly or indirectly, deprived himself/herself of income in order to qualify for a pension or allowance, that income shall be assessed as means as if the person or couple had not deprived themselves of same.

In such cases, where the yearly value of the income has decreased since the date that the customer or spouse, civil partner or cohabitant disposed of it, account will be taken of this decrease. In a case where the value of the income has increased since the date on which the customer or spouse, civil partner or cohabitant disposed of it, the means assessed will not take account of this increase.

Reduced rate of Army pensions

In certain cases, ex-army personnel who retire early, but who do not leave their army accommodation, are paid reduced rates of pension by the Department of Defence until they vacate their accommodation.

In investigating claims from ex-army personnel who retain their accommodation, the reasons for not vacating their army accommodation are investigated. If it is established that a customer is depriving him/herself of an income (by virtue of reduced pension), s/he may be assessed with the full value of his/her pension.

In the case of claims for Jobseeker’s Allowance by the sons/daughters of army personnel, benefit & privilege assessments will only be based on the actual rates of pension in payment.

This section applies to the following schemes:

• State Pension (Non-Contributory),
• Blind Pension, and
• Carer's Allowance.

(Rule 4 of Part 3 and Rule 4 of Part 5 of the Third Schedule of the Social Welfare Consolidation Act 2005 as amended refer.)

A couple in this case means each person of:

• a married couple who are living together, or
• civil partners who are living together, or
• a cohabiting couple

See separate guideline regarding “Cohabitation”.

In the above schemes when calculating the means of a customer who is one of a couple living together:

• The means of each member of the couple are assessed according to Rule 4 of Part 3 (State Pension (non-Contributory)) or Rule 4 of Part 5 (Blind Pension and Carer’s Allowance) of the Third Schedule.
• The means of the customer shall be taken to be half (sometimes called a moiety) of the total means of the couple.

Married couple or Civil Partners temporarily living apart

The following factors should be considered in deciding whether or not Rule 4 applies:

• whether they share financially as a couple,
• whether the separation is temporary or long-term,
• whether there is an expectation of living together again shortly,
• whether the marriage or civil partnership remains unbroken.

If, for example, one of the couple is employed away from home, but returns home periodically and regularly contributes to the support of the other member, the means in this case would generally be assessed on the basis of half the combined means of the couple.

Separation Order

Where a married couple are separated, any sums paid by one member of the couple to the other under the terms of a separation order, must be deducted from the means of the person paying it. Means are not halved in these circumstances.

Moeity - Means Following the Death of One of a Couple

In the case of State Pension (Non-Contributory), Blind Pension and Carer’s Allowance, the means of the surviving member of a couple are not altered because of the death of a spouse, civil partner or cohabitant.

Where a customer was in receipt of (or becomes entitled to) payment of one of the above pensions or allowances prior to the death of his or her spouse/civil partner/cohabitant the half of the means assessed as the means of the spouse/civil partner/cohabitant at that date are deducted from the total means of the survivor thereafter, if any question arises with regard to a reduced entitlement. However the full means of the survivor are assessed in the context of an application for increase.

Example: One member of a couple died on 01/07/2014. On that date the joint means of the couple was €12,000 in capital (each being assessed with €6,000). Following the death the survivor continues to be assessed with half the disclosed means, which is €6,000.

If on 01/09/2014 the survivor’s capital increases to €15,000 s/he will be assessed as follows:

Notes:

1) Where several items of means were assessed at date of death, and these items vary thereafter, in applying this rule it is advisable to show the moiety at death separately in regard to each item when calculating the effect of the later variations. Where an item of means ceases, the moiety deduction in relation to that item also ceases.

(Moiety at death = the half portion of the means assessed against the deceased member of the couple at date of death).

2) It has been accepted that a transfer from British Retirement Pension (BRP) to British Widow’s Pension (BWP) should be treated as a continuance of the same element of means and half of the BRP (which was payable to the survivor at the date of death of the spouse) may therefore be deducted from the BWP.

3) If undisclosed means subsequently come to light, the survivor’s means will continue to be assessed against the survivor at the moiety at death level, unless any items of means calculated at that time has now ceased (see note 1).

(See “Payment-related issues” guideline regarding payment for 6 weeks after death) .

Testacy and Intestacy Cases

General

The provisions of the Succession Act 1965 apply to the estate of every person who dies after 1 January 1967 whether testate or intestate. These provisions provide rules in relation to the devolution, administration, disposition by will and distribution in intestacy of the property of the deceased person.

The rules afford the surviving spouse or civil partner a legal right to a share in the deceased’s estate and allow the child(ren) of the deceased person to apply to the Courts to have provision made for them out of the estate.

The following paragraphs outline the manner in which they are applied by this department.

Rules of Intestacy

The rules provide as follows:

Assessment of Means in Intestacy Cases

The above rules are applied in cases where a customer is entitled to an intestacy share in an estate. If the customer is in sole beneficial occupation of the estate (i.e. a farm or other business) and does not give any of the income to any other person who would be entitled to an intestacy share, the income received is to be assessed in full against the customer.

Testacy

Where a person dies on or after 1 January 1967 the following rules apply whether the will was made before or after 1 January 1967.

• If the deceased person leaves a spouse or civil partner and no children, spouse or civil partner is legally entitled to one half of the estate.
• If the deceased person leaves a spouse or civil partner and children, the spouse or civil partner will be entitled to one third of the estate.

The legal right of the spouse or civil partner is subject to the following:

• The legal right of the spouse or civil partner has priority over all bequests in the Will, unless that right has been renounced in writing by a pre-nuptial agreement or during the marriage.
• If a bequest to a spouse or civil partner is not described as being in addition to the spouse’s or civil partner’s legal right, the bequest shall be taken as being in part or full satisfaction of that legal right.
• If there is a bequest to a spouse or civil partner in a will the spouse or civil partner may elect to accept either that bequest or the legal right. If the spouse or civil partner fails to elect either (s)he will be entitled to his/her bequest but not his/her legal right. If the spouse or civil partner elects to take his /her legal right (s)he can elect to take any bequest in the will as being in part or full satisfaction of that legal right.
• The spouse or civil partner must so elect within six months of being notified in writing of that right by the Personal Representative or within twelve months after the will has been proved, whichever is the later.
• Where a deceased person has made permanent provision for his/her spouse or civil partner during the deceased person’s lifetime before 1 January 1967, other than periodical payments for maintenance made during the deceased person’s lifetime, such a provision shall be offset against the legal right of the spouse or civil partner.

Assessment of Means in Testacy Cases

Where a Will has been proved or is in the process of being proven, it should be established whether the estate is to be administered in accordance with the terms of the Will or on the basis of the legal right of the person involved. The means should be assessed accordingly.

Where a Will has not been proved, the customer’s means should be assessed in accordance with the terms of the Will. The case should be re-investigated in due course to determine whether the customer’s share of the estate was in accordance with the terms of the Will or on the basis of the customer’s legal entitlement and the means revised if warranted.

If a Will is unproven, but a customer is in beneficial occupation of the estate, the means are to be assessed on the basis of the factual position.

Appropriation of Dwelling House

If a person dies, either testate or intestate, leaving a family home in which the spouse or civil partner ordinarily resides, the spouse or civil partner may opt to appropriate the dwelling in satisfaction or partial satisfaction of his/her share of the estate. If the house is insufficient to satisfy the customer’s share s/he may also appropriate the share(s) of any child(ren) under 18 years to satisfy the deficiency.

This appropriation applies to a house used solely for domestic purposes, and not for commercial purposes, except with the consent of the Court. The right must be exercised within six months after the Personal Representative has notified the spouse or civil partner of the right or within twelve months after Probate or Administration has been taken out whichever is the later.

Following such an appropriation, the spouse or civil partner becomes the sole owner of the dwelling house.

This section applies to the following schemes:

• State Pension (Non-contributory),
• Blind Pension,
• Widow’s, Widower’s and Surviving Civil Partner’s (Non-contributory) Pension,
• Guardian’s Payment (Non-Contributory),
• One-Parent Family Payment (OFP),
• Carer's Allowance

What is meant by ‘other pension’?

‘Other Pension’ means, any pension OTHER than one paid by this department OR its equivalent in an EU Member State*, for example:

i. A pension paid by the Government, for example, a Civil Service Pension

ii. Pensions paid by another Government other than one equivalent to DSP in an EU Member State, for example, an US Retirement Pension.

iii. Pensions paid by State Companies, for example, ESB, CIE.

iv. Pensions paid by Local Authorities, for example, a County Council or Corporation.

v. Pensions paid by a private company.

Rule 5 (of Part 5 of the Third Schedule) applies when one of the above Social Welfare payments other than SPNC is in payment to a customer who also has another pension. The equivalent rule for SPNC purposes is in Part 3. Rule 5 operates as follows:

When the ‘other pension’ is increased (at any date following the date of first entitlement to the Social Welfare payment), any portion of the increase in the ‘other pension’ (or the combined increases where more than one has taken place), which when assessed as means would result in a reduction in the Social Welfare pension/allowance of an amount greater than the increase in the ‘other pension’, cannot be assessed as means.

• Article 5 of EC Regulation 883 of 2004, states that where the receipt of social security benefits and other income, facts and events have certain legal effects under legislation in the competent Member State, the same treatment shall apply to equivalent factors acquired from residence in another Member State.

Example:

A customer has a State Pension (Non-Contributory) with a means assessment from another pension of €34.00 weekly (placing the customer in the €32.50 to €35.00* means bracket). On recalculation of means following (say) an increase of €2.00 per week in the other pension, his/her means for State Pension (Non-Contributory) will be limited to €35.00 weekly as raising the assessment above the €35.00 means bracket would result in reducing the State Pension by €2.50 per week. The amount of €1.00 weekly deducted from means for this purpose will also be ignored if any question of reduction arises in future assessments.

• Means rates extracted from SW19 (2021) at date of publication and are subject to change. For details see page 22 in the Current rates of payment for social welfare payments (SW19)

Note: Rule 5 only applies to prevent a reduction in payment greater than the increase in other pension. If the pensioner applies for an increase in pension (because other means have decreased), the full amount of the other pension would have to be taken into account when considering entitlement to any such increase. Rule 5 does not prevent a reduction of an equal amount.

Where several increases in the other pension have occurred since last assessment, those increases should be aggregated in the calculation of the current application of the rule. Where a customer has more than one other pension or a couple both have other pensions, the increases should be aggregated.

If there are other means, e.g. capital, any changes in such other means up to the date of increase in the other pension should be calculated first, and the application of this rule considered only in the light of the increase in other pension.

Loss of Living Alone allowance, over 80 allowance, and/or Increase for Qualified Adult where appropriate should be included in the calculation of the loss in State Pension.

For instance, when an increase in ‘other pension’ is greater than the basic rate of social welfare pension/allowance in payment, termination of the social welfare payment arises for consideration. However, if the combined amount of the social welfare payment plus allowances (e.g. Living Alone allowance, over 80 allowance, Qualified Adult Increase) is greater than the increase in ‘other pension’, the minimum rate of the appropriate social welfare payment is then payable plus the relevant allowances.

Where the ‘other pension’ is paid in another currency, and there is a change in the rate of the ‘other pension’, the exchange rate used is the rate published by the ECB the day before the means calculation takes effect. – e.g. if a means assessment is effective from 17th July, then the conversion rate for any foreign ‘earnings or benefits’ should be the rate applicable on 16th July.

If a single lump sum is received (a capital factor), the exchange rate used is the rate published by the ECB on the first day of the month immediately preceding the month when the means calculation takes effect.

e.g. if a customer received a single foreign lump sum payment on 17th July, then this would be assessed using the currency conversion rate for 1st June.

Where a customer loses entitlement to a State Pension (etc.) and subsequently requalifies (perhaps because of Budget increases, or because of the loss of another element of means), the full amount of the ‘other pension’ is assessable.

Rule 5 only protects a pension that is already in payment.

Assessment in the case of couples

Rule 5 is applied identically to both members of a couple. For example, each member of a married couple/civil partnership/co-habiting couple is getting a State Pension (Non-Contributory) based upon individual weekly means of €34.00 (i.e. combined means of €68.00 divided in two)*. If the combined weekly means increase by €4.00, the actual means of each member will increase to €36.00. However, due to the application of Rule 5, their individual weekly means will be limited to €35.00, thereby necessitating no change in their weekly rate of State Pension (Non-Contributory).

• Means rates extracted from SW19 (2022) at date of publication and are subject to change. For details see page 22 in the Current rates of payment for social welfare payments Booklet (SW19 )

On the death of one member of a couple, the net amount of other pension assessable against the surviving member at that date is calculated. Any subsequent increases in the ‘other pension’ are added to that net figure, in order to establish assessable means.

List of agri-environmental schemes which attract a statutory disregard of means under Section 20 of the Social Welfare Act 2021. Effective from 1 June 2022.

Approved schemes are:

• the Beef Exceptional Aid Measure;
• the Beef Data and Genomics Programme (2015 – 2020) (2017 – 2022) (2021);
• the Beef Environmental Efficiency Plan (BEEP-S) as part of the Beef Sector Efficiency Programme;
• the Dairy Beef Calf Programme as part of the Beef Sector Efficiency Programme;
• the Results Based Environment Agri-Pilot Programme;
• the Sheep Welfare Scheme;
• the Afforestation Grant and Premium Scheme (2000 –2006) (2007 – 2013) (2014 – 2020);
• the Ash Dieback Replanting Scheme;
• the Creation of Woodland on Public Lands Scheme;
• the Deer Tree Shelter and Deer/Hare Fencing Scheme;
• the Forestry Grants and Premium Schemes (2014 – 2020);
• the Forest Genetic Resources Reproductive Material Scheme;
• the Forest Road Scheme;
• the Forestry Knowledge Transfer Group Scheme;
• the Innovative Forestry Forest Technology: Central tyre inflation scheme module;
• the Native Woodland Conservation Scheme;
• the NeighbourWood Scheme;
• the Reconstitution and Underplanting Scheme (Ash Dieback);
• the Woodland Improvement Scheme including Continuous Forestry Cover.

Effective from 1 April 2023:

• the Sheep Improvement Scheme;
• the Agri-Climate Rural Environment Scheme (ACRES);
• the Organic Farming Scheme;
• the Reconstitution of Woodland Scheme (Frost) 2022;
• the Afforestation Grant and Premium Scheme;
• the Forestry Grants and Premium Schemes