# OAP free entitlements means test question



## josip (4 Nov 2010)

From today's Independent

"The Department of Social Welfare calculates the weekly means test by adding together the maximum rate of state contributory pension of €230.30, plus €100 and any further allowances paid for a qualified adult, dependent child or Living Alone increase."

My mother is over 70 years of age receiving a maximum contributory pension.  She is in receipt of some investment dividends totalling 66 Euro per month. I also have a covenant set up whereby I give her 320 Euro each month. On her From 54 claims which she submits each year, it is not the 320 net that is recorded, but the 400 gross before tax amount.

My question is, does anyone at this stage know if the 100 Euro weekly income limit referred to above, is net or gross income?


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## Black Sheep (5 Nov 2010)

Is your query related to the Fuel Allowance or the Household Benefit Package (Electricity, Telephone & TV.) or both


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## elcato (5 Nov 2010)

Currently if your mother is over 70 she is not means tested. I presume you are thinking that maybe next year you may have to fill in this form ?


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## Black Sheep (5 Nov 2010)

Sorry to have to disappoint you but means testing does *not* stop at 70 for certain payments, hence my question re which allowance is she seeking


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## Papercut (5 Nov 2010)

*Pensioners facing means test as €6bn in cuts loom*

The OP is referring to  article in the Irish Independent.

The article speculates on the possibility of pensioners over the age of 70 being means tested for the Household Benefits Package in the upcoming Budget.


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## Black Sheep (5 Nov 2010)

As the OP is in receipt of a qualifying payment at present no means test applies to her but it seems anything is possible in the future.
I hadn't read the newspaper article yesterday.


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## josip (5 Nov 2010)

Black Sheep said:


> Is your query related to the Fuel Allowance or the Household Benefit Package (Electricity, Telephone & TV.) or both


 
Black Sheep, she is currently in receipt of both Free Fuel and the Household Benefit Package. The Irish Independent article is indeed speculative and while nothing is definite at this point in time, I was wondering if people's knowledge or experience of similar means tests would lead them to expect that this would be net or gross of tax should it come to pass.


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## Papercut (6 Nov 2010)

My personal experience is net of tax, as in the amount physically received into a bank account.

In the past, when income levels for means tests have been altered, if a person has qualified under one set of guidelines for a particular payment, they continue to qualify under those guidelines, & only new applicants are affected by policy changes. 

All things being equal, & assuming that your mother declared all income at the time she was means tested for Fuel Allowance, & her circumstances have not changed since, I would assume that her entitlement would not change either.

But, as Black Sheep has pointed out: Anything is possible in the future, so my advice is to wait & see what transpires on budget day. Presumably things will then be crystal clear........

Should it transpire that the automatic entitlement to the Household Benefits Package for over 70's will after the budget be means tested (like the Medical Card automatic entitlement in last years budget), who knows what the income threshold might be. Either way net income would be what's assessed as means in my opinion.

Simply put, if someone has been granted a Fuel Allowance, & their circumstances have not changed since, the chances are that any changes in means test guidelines will not affect them.


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## Megan (7 Nov 2010)

If you are over 70 and are applying for a medical card it is your gross income that you are access on. Under 70 and applying for a medical card it is your net figure. I know the over 70's can qualify on a much higher income then under 70.


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