Working for Work : Chapter 4 : Welfare to Work

Working and Claiming a Disability Payment

There are three main types of Disability/Illness payments available from the Department of Social Protection. Each payment type has its own qualification requirements.

Disability Allowance (DA):

A weekly allowance paid to people with a disability. The disability must be expected to last for at least one year. It is subject to a medical assessment and a means test. The payment is made for the duration of the person's disability and may be subject to further medical reviews. -

Illness Benefit (IB):

A weekly benefit paid to people who are/have been in insured employment and who cannot work due to illness. It is based on PRSI contributions, paid for a maximum of 2 years and it is not means tested - but is subject to a medical assessment and the provision of medical evidence. -

Invalidity Pension (IP):

Invalidity Pension is a payment for people who are permanently incapable of work because of an illness or incapacity. It is based on PRSI contributions, it is not means tested - but is subject to a medical assessment. Qualified persons will usually progress from Illness Benefit to this payment in the event of a permanent illness/incapacity.

Not Capable of Work

All disability payments are made on the understanding that the claimant is not capable of work; and as a general rule, you cannot work in mainstream part-time or full-time employment while on a disability payment.

Rehabilitative Work

A person in receipt of Disability Allowance, Illness Benefit and Invalidity Pension can take-up 'rehabilitative' work while on a disability payment if that work contributes to an improvement in their condition or increases their ability to cope with their illness or disability.

The person must apply for and receive permission from the Department of Social Protection before taking-up any 'rehabilitative' work.

Exemptions for Rehabilitative Work

An exemption to engage in rehabilitative work can last for up to 12 months, or the specific duration of the rehabilitative employment. You must reapply for a further exemption when it runs out. While it would appear that there is no official limit on the number of exemptions which may be granted, the Department of Social Protection will consider any future benefits of rehabilitative work and the person's disability in determining if any further exemptions should be given.

Community Employment (CE)

Persons on Disability Allowance, Illness Benefit and Invalidity Pension are allowed to participate on Community Employment as 'rehabilitative' work. Income from Community Employment will be assessed as means for Disability Allowance, but will not affect any Invalidity Pension or Illness Benefit payment. Contact the INOU for further information on Community Employment.

FÁS Training Courses

Persons on Disability Allowance, Illness Benefit and Invalidity Pension are allowed to participate on FÁS Training Courses, subject to approval of the Department of Social Protection. How income from/participation on a FÁS Training course is assessed is dealt with on the following pages.

Moving from Illness Benefit to Disability Allowance

If you are advised by the Department of Social Protection that you about to exhaust your entitlement to an Illness Benefit payment (after a maximum of 2 years payment) you may be able to apply for Disability Allowance. As this is a means tested payment you will need to check out if your payment will be affected by:

• any rehabilitative employment you are engaged in, or
• employment/self-employment your partner or spouse is engaged in.

Both Illness Benefit and Invalidity Pension are non-means tested payments, whereas Disability Allowance is means tested, so you will also need to take into consideration the value of any other income, savings, capital, investments or property other than your own home and how this could affect your entitlement to Disability Allowance. The capital disregard for Disability Allowance is €50,000.

Disability Allowance (DA) and Work

People in receipt of Disability Allowance are allowed to participate in approved 'rehabilitative' work (employment or self-employment) and retain some or all of their Disability Allowance payment. Secondary benefits may be affected by income.

Rehabilitative Work

A person in receipt of Disability Allowance must apply for and receive permission from the Department of Social Protection before taking-up any 'rehabilitative' work. Any decision to grant permission will be based on the nature of the persons disability and the rehabilitative work proposed.

Limits on Hours Worked

While no restriction has been placed on the number of hours you may work you should use a maximum of 20 hours a week as a guideline. If you work for more than 20 hours per week your payment could be suspended. You will not qualify for payment of Disability Allowance if you engage in full-time employment or Self-employment.

Assessment of Earnings from Rehabilitative Work

Income from rehabilitative work is assessed as follows. The first €120 per week will not affect the Disability Allowance payment. Earnings between €120 and €350 are assessed at 50%. Income over €350 is fully assessed euro for euro - for example: Income from rehabilitative work = €200 Rehabilitative earnings disregard = €120 Balance = €80 Actual assessable income from employment = €40 Result - DA payment will be reduced by = €40 per week

 

Disability Allowance and Community Employment

Persons on Disability Allowance are allowed to participate on Community Employment. Income from rehabilitative work under the Community Employment scheme is classed as income from employment (see above).

Disability Allowance and FÁS Training Courses

Persons on Disability Allowance are allowed to participate on FÁS Training Courses. The Disability Allowance payment is suspended for the duration of the course and a FÁS Training Allowance will be paid instead. Participants will receive a training bonus of €20 per week. When the course is over the person will go back on their Disability Allowance.

Disability Allowance and Secondary Benefits

Entitlement to retain part or all of your secondary benefits may be affected by the source of the additional income, the following outlines how your secondary benefits are affected by various sources of additional income.

 

Rehabilitative Employment: Fuel Allowance: Not Affected Rent Supplement: May be affected Household Benefits: Not Affected Medical Card: May be affected Community Employment: Fuel Allowance: Not Affected Rent Supplement: May be affected Household Benefits: Not Affected Medical Card: Not Affected FÁS Training Course: Fuel Allowance: Not Affected Rent Supplement: Not Affected Household Benefits: Not Affected Medical Card: Not Affected

 

Disability Allowance and Means Test

The means test to qualify for Disability Allowance is the same as Jobseeker's Allowance (see Chapter 1), with the exception that the capital disregard for Disability Allowance is €50,000.

Disability Allowance and spouse/civil partner/cohabitant Working

If your spouse or partner works, is engaged in self-employment or has an income from a course of training or education, their income could affect your Disability Allowance payment - even if you are not claiming for them as a Qualified Adult on your Disability Allowance payment. Their weekly earnings are gross earnings less PRSI, superannuation and union dues. €20 per day (up to a maximum of €60) from work is deducted from your spouse/civil partner/cohabitant's average weekly earnings and then 60% of the balance is assessed as weekly means. The weekly means is then deducted from the combined total of your personal rate of Disability Allowance and the maximum payment for a Qualified Adult.

Disability Allowance and Maintenance

Persons receiving maintenance while on Disability Allowance may count up to €95.23 of maintenance against rent or mortgage costs, with half the remaining amount assessed as means. Proof of rent/mortgage payments is required.

Disability Allowance and SWA Payments

The Community Welfare Officer (CWO) may have the discretion to allow a person to access certain SWA payments, if a case can be made to show that a special need exists, this includes the Back to School Clothing and Footwear Allowance, Exception Needs Payments and Urgent Needs Payments.

Disability Allowance and Family Income Supplement (FIS)

If a person on Disability Allowance engages in approved rehabilitative work (not including Community Employment) for more than 19 hours per week s/he may apply for the weekly tax free Family Income Supplement payment (see FIS in this Chapter).

Disability Allowance and Residential Care

If you are getting Disability Allowance and go into hospital or residential care you will continue to get your payment as long as you meet the qualifying conditions. If you were not getting Disability Allowance before living in residential care you can now qualify for Disability Allowance once you meet the qualifying conditions.

Last Updated: 31/08/2011 ^ back to top