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Dáil Éireann debate -
Wednesday, 24 May 1961

Vol. 189 No. 6

Ceisteanna—Questions. Oral Answers. - Non-Contributory Pensions: Means Test.

8.

asked the Minister for Social Welfare the cost of investigating incomes under the Old Age Pensions Acts; and if he has considered the abolition of the means test for non-contributory pensions, as no such test now applies to cases of contributory old age pensions.

Old Age Pensions are administered integrally with other Social Assistance Services and it would not be practicable to keep a separate record of the cost of investigating means under the Old Age Pensions Acts. The yearly cost is, however, estimated to be of the order of £25,000.

The answer to the second part of the question is in the negative. In this connection I would refer the Deputy to the reply given on 13th April last to a similar question. In that reply it was indicated that the abolition of the means test for non-contributory old age pension would not bring any advantage to the vast majority of non-contributory old age pensioners, over 90 per cent. of whom already qualify for the maximum rate of pension under the existing means test. The purpose of the means test is to ensure that such money as can be made available for social assistance goes to those whose need is greatest. Its abolition would benefit only the small minority of non-contributory pensioners receiving payment at reduced rates because they have some means and those whose means are sufficient to exclude them altogether from entitlement to non-contributory old age pension. Many of the last mentioned category would, of course, be people well able to maintain themselves and, therefore, not in need of assistance from the State. It was pointed out finally in the reply that, having regard to the limited resources of our community, which in turn limit the amount of the national product available for social assistance, it was felt that it would be appreciated that payment of non-contributory old age pensions without a means test to all such persons could only be made at the expense of those who are truly in need of the maximum pension the community can afford.

Could the Minister say what would be the cost if the means test were abolished entirely— what would be the increased cost?

About £2,320,000.

It is clear from the Minister's reply that the number of people who might benefit if such means test were abolished is very small but would the Minister agree that that small number is totally dissatisfied with the manner in which the investigation officers assess their means?

I suppose if I apply for a pension and do not get it I should probably be dissatisfied but that does not means to say that I am entitled to it.

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