An estimated 500 people claiming Disability Allowance will benefit from an increase in the amount of capital excluded in means tests for the benefit.
The capital disregard - which includes money invested in a financial institution, stocks and shares, and the capital value of property other than the family home - will be increased by €30,000 to €50,000.
Minister for Social Affairs Séamus Brennan said it was been recognised that a person in receipt of Disability Allowance may not have the opportunity to accumulate savings or other income through participation in employment.
"This measure that I have introduced will go some way towards addressing the issue of financial provision for vulnerable clients, particularly by parents, by way of bequest," said Mr Brennan.
The Minister added that the increase in the disregard addresses "a fundamental issue that underpins the Disability Sectoral Plan by not only contributing to the financial security of people with disabilities but also by encouraging and supporting them to participate to the maximum in society".
The cost of the measure is estimated at almost €600,000 for the remainder of 2007 and will cost in the region of €1 million to implement in a full year.
At the moment, there are approximately 500 people getting a reduced-rate Disability Allowance that will benefit from the increase in the disregard level.