Mother and Baby Homes - Means-tested benefits

Please note that the information contained in this blog applies to people living in Great Britain.

The Irish government Mother and Baby Institutions Payment Scheme has been open for applications since 20th March 2024. 

The Case Management has been processing applications and has started to make the first set of payments. Payments can range from €5,000 to €128,000. At present, the average payment for applications stands at €15,000.

In the Republic of Ireland, means-tested benefits are not affected by payments from the Mother and Baby Home Payment Scheme. However, this is not the case in Britain. At the moment, any payment from the Mother and Baby Institutions

Payment Scheme can impact on:

· Universal Credit

· Pension Credit

· Housing Benefit

· Council Tax Support

· Job Seekers Allowance

· Employment Support Allowance

· Income Support

For benefits to be unaffected, the British government would have to authorise an exemption for the Mother and Baby Home Payment Scheme. We are working alongside Irish in Britain to lobby the government on this matter.

As it currently stands:

Former residents in the UK aged over 66 who have more than £10,000 in savings (or £6,000 if you are under 66 years) will have their means-tested benefits reduced if they receive a payment form the Payment Scheme. 

Under most circumstances, means-tested benefits are stopped completely when savings exceed £16,000.

If the Department of Work and Pensions or Local Authority believes that a person has attempted ‘deliberate deprivation of assets’ - that is, spending money deliberately to come under the savings threshold ahead of receiving payment from the scheme - they can refuse a benefit claim, and reduce or stop means-tested benefits. 

Similarly, if a person gives money away to a relative as a gift e.g. children or grandchildren, means-tested benefits can reduce or stop. 

Sounds complicated? It can be. However, if you have questions, Fréa is here to help former residents now living in the north of England. Our advice is always free and confidential. We can also direct former residents to specially trained caseworkers based in London and Coventry depending on location. 

For more information about a payment’s impact on means-tested benefits or any other Mother and Baby Home-related enquiry, please contact us or speak to Patrick on 07432168382