A decision to include money saved from Special Savings Incentive Accounts (SSIAs) in assessing people's welfare entitlements has been described as "mean-spirited" by the Labour Party.
The Minister for Social and Family Affairs, Mr Brennan, confirmed yesterday that it remained the plan that the accounts, introduced by the Government, would be treated in the same manner as any other cash income. Ms Kathleen Lynch of the Labour Party described it as "ridiculous". She is calling on Mr Brennan to reverse the measure before SSIA accounts mature in 2006.
"The SSIA scheme was designed to allow people to save either small or large amounts. Presumably those on social welfare who took the Government's advice and opened accounts have only been able to deposit minimal sums," she said.
"I doubt if many were aware that, by putting money away for the future, they would be jeopardising their welfare entitlements down the road."
A spokesman for the Minister said, however, it was the Department's view that the inclusion of money held in SSIAs was unlikely to affect many welfare recipients as it applied only to means-tested payments.
In the majority of support schemes where means assessment was used, the first €12,697.38 of capital was disregarded, and a sliding-scale system was applied for amounts above this, he said.
"However, the Minister said that, as it is still some time before the SSIAs begin maturing, he has ordered the Department to re-examine the situation."
Ms Lynch said that when 11 millionaires paid "absolutely no tax in 2001, the very year the SSIA scheme was launched", it was unfair and in defiance of the "once off" spirit of the scheme that social welfare recipients should have payments affected.
