Entitlement to an old age non-contributory pension is determined by reference to the age of the applicant, whether they are resident in the State and whether they satisfy a means test. The means test is similar to that used to determine entitlement to all social assistance schemes and takes account of any income the applicant or his or her spouse or partner may have as well as property, except their home, or assets which are capable of providing an income. It includes an assessment of the value of any capital or investments held by the applicant. For old age non-contributory pension purposes, an initial £200 of capital is disregarded, 5 per cent of the next £375 is assessed and the balance is assessed at the 10 per cent rate. The figure arrived at is then divided by 52 to obtain the weekly means and £1 is added to the weekly value thus calculated.Any improvements in the means test generally would have significant financial implications which could only be considered in the context of additional resources being made available.
The national fuel scheme assists householders who are on long term social welfare or health board payments and who are unable to provide for their own heating needs. One fuel allowance is payable per household. All people in receipt of a non-contributory pension automatically qualify for payment under the national fuel scheme as their means are already assessed as for pension purposes.
At present, where a contributory pensioner and his household have a combined income, from any source, of more than £5 a week above the relevant contributory social welfare pension, they will not qualify for the fuel allowance. However, as announced in the budget, I will be increasing this limit to £10 per week for the heating season commencing next October. The effect of this increase is that more people on low incomes will qualify for the fuel allowance next winter.