asked the Minister for Social Welfare the number of persons in receipt of (a) a non-contributory old-age pension and (b) a contributory one, and the cost of each to the Exchequer; and what would be the additional cost to the Exchequer of increasing each category by (i) 2/6d. per week and (ii) 5/- per week.
Ceisteanna—Questions. Oral Answers. - Old Age Pensions.
71.
At 30th June, 1962, there were 117,800 persons in receipt of noncontributory old age pension at an estimated cost to the Exchequer of £9,182,000 in the current financial year. The 2/6d. a week increase which was granted in these pensions from 3rd August, 1962, was estimated to cost an additional £783,700 a year. The cost of a 5/- increase would be twice that amount or £1,567,400.
There were 35,901 recipients of old age contributory pensions at 30th September, 1962. On the basis that the Exchequer contributes approximately one-third of the cost of all benefits payable from the Social Insurance Fund, the yearly cost to the Exchequer of these pensions is estimated at £1,800,000 from January next, when a 5/- increase in pension rates and a similar increase in the associated allowance payable for a wife or invalided dependent husband comes into effect. The estimated yearly cost to the Exchequer of the 5/- increase is £217,000. A 2/6d. increase would cost half that sum, or £108,500.