asked the Minister for Social Welfare why the rate of old age pension granted to a widow in County Donegal (name supplied) is £4 less than the rate of her widow's pension.
Ceisteanna—Questions. - County Donegal Old Age Pension.
14.
The reduction occurred in this case because of the different methods of calculating means derived from capital in these two types of pensions. In this instance the pensioner possessed stock, the market value of which is over £4,000, and she derives an income therefrom of £475 a year.
Prior to the year 1963 the same method of assessment was used for both pensions but in November, 1963, provision was made for a more liberal assessment of means derived from capital in the case of a widow. The reason for the change lay broadly in the fact that a high proportion of widows are left with young families and have to face not only a major economic adjustment on the death of the husband but also problems of rearing and educating their children, which do not arise in the case of old age pension claimants.
While I am well aware that there is a difference in the system of assessing means as between widows and old age pensioners, with the recent easement in the old age pensions' means test one could hardly expect there would be a difference of £4 in the amounts of the two pensions. It is difficult to believe there would be a reduction of as much as £4 when changing from the widow's pension to the old age pension.
The Deputy has raised two points. The widow's pension which this lady was first awarded in May, 1973, was £1.15 and this was increased to £5.15 as a result of the recent budget. The Deputy should be aware that there has been no change in what was awarded and payable in May until the recent reassessment. The system of calculating the rate payable is the system that was adjusted in favour of widows in 1963.
I am aware of that and I answered many questions in regard to it. But does the Parliamentary Secretary not agree that there must have been a means assessment for the widow's pension in the first instance which entitled her to £5.15 and on changing over to the old age pension in respect of which the Parliamentary Secretary has been boasting that he eased the means test——
This is an injection of argument. We cannot debate the matter now.
She still should not lose as much as £4. Would the Parliamentary Secretary say if the case has been finalised?
Yes, it has. The pension was calculated and first awarded to this lady on 31st May, 1973. This calculation was done under the system in operation when the Deputy was Minister for Social Welfare. Her widow's pension, under that assessment, was £1.15 per week. As a result of the provisions in the budget that was increased to £5.15 per week. As the Deputy is aware, since 1963 there has been a different means of assessing widows' and old age pensions in favour of widows.
Will the Parliamentary Secretary——
We have devoted a lot of time to the subject. One final, brief supplementary question.
This is very important.
It was important when we were in Opposition and I asked many questions——
Order. Let us get on with the business of Question Time.
A final supplementary — is the Parliamentary Secretary aware that his colleague now sitting immediately on his right announced, in my presence, in Monaghan, recently that you can now have £4,000 and still get the full old age pension.
Which is correct.
This lady, in fact, has stock valued at £4,625.
She was nailed. She loses £4.