asked the Minister for Social Welfare the steps, if any, which will be taken by her Department to discourage people particularly those in the older age group, from hoarding cash in their homes; and the special consideration, if any, which will be given to these people who have some moneys in assessing them for eligibility for non-contributory old age pensions.
Ceisteanna—Questions. Oral Answers. - Cash Hoarding.
8.
In determining the amount of non-contributory pension to which a person is entitled, the value of savings must be taken into account under the legislation governing these pension schemes. It is, however, possible to have a large amount of savings and still qualify for pension. A single person can have savings of up to £2,987.50 and a married couple double that amount and still qualify for full old age pension. Reduced rate pensions may be paid to persons with savings of up to £22,747.50 for a single person and double that amount for a married couple.
Extensive publicity aimed at dissuading people from keeping money at home has already been given to the fact that non-contributory pensioners can have these substantial sums and still qualify for pensions. This included the distribution of a leaflet through the post offices to every pensioner twice last year. I would like to take this opportunity to emphasise that people who keep money at home are exposing themselves to risks and in their own interest would be well advised not to keep their savings at home.
Whilst accepting that considerable moneys can be held by people before they are deemed ineligible for non-contributory old age pension and notwithstanding that the Minister's predecessor on many occasions in the past encouraged old people, in particular, to invest their money in the banking institutes, would she not agree that in the most recent budget there has been inserted a particular disincentive to old people to invest their moneys in banks because of the 35 per cent retention tax on the interest? As a consequence, more and more old people will now begin to hoard their money at home rather than invest it.
That would seem to be another Minister's responsibility.
It relates directly to the problems of people claiming. They have been encouraged by the Minister's predecessor and the Minister has reiterated today that people should be encouraged to place their moneys in institutions and not keep them at home, under the bed or in the roof. There is a disincentive and have the Minister and her colleagues in Government any intention of rectifying the position?
There are only draughts up in the roof.
I consider that the bulk of that question is directed towards another area. In the original answer to the Deputy I mentioned the campaign launched last year and very widely circulated to pensioners and very many organisations throughout the country. A special leaflet was also sent out specifically referring to saving schemes in the Post Office. The Deputy is well aware that there are many such schemes which are very suitable for old people's savings.
Whilst accepting that there was quite a major campaign advertising that old people should invest their moneys in the appropriate institutions, would the Minister not agree that that campaign, which was very effective, has been totally undermined by the retention tax? Would she not agree that there is now a very great likelihood that many more people, particularly along the western seaboard——
The Minister is not responsible for the retention tax or the budget.
Many people along the western seaboard who have been assaulted in the past because of hoarding money will now continue to hoard money. Has the Minister any plans to consult with her colleague in Government with a view to altering the regulations?
I have to agree with the Ceann Comhairle that the bulk of that question is for another Minister. I repeat my reference to the many schemes available to people through the Post Office system.
While I appreciate that the retention tax is the responsibility of another Minister, I would like to ask this Minister if she is aware that the retention tax will reduce the means of pensioners? What plans has she to ensure that pensioners' means will be reviewed automatically in the case of those who declare money in financial institutions? What plans has she to have their pensions reviewed to ensure that they will be increased, as they must be, when the tax is deducted from their income?
That seems to be another question.
No, it is relevant to the question which Deputy McCarthy asked.
Deputy McCarthy's question was about keeping cash at home. The Deputy's question is about a means test.
But is that aspect not in the question as well? Deputy McCarthy wanted to know what special consideration would be given to these people who have moneys invested, in assessing them for eligibility. I am asking what plans the Minister has to re-assess these people for eligibility, in view of the fact that their means will be reduced automatically as a result of the retention tax. Surely they are entitled to that.
I can only repeat what I said earlier, that the question of the retention tax is not for this Minister.
A Minister.
My question is specifically for this Minister. She is responsible for the assessment of means and assessment for eligibility to pensions. She cannot get out of this by saying it is the responsibility of another Minister. I am asking what plans she has to ensure that an injustice will not be done to old age pensioners because of the retention tax disincentive.
I can only emphasise that there are many ways of saving money in different areas. The question here about steps to discourage people from hoarding cash in their homes has been answered very fully. I drew the attention of the Deputies to the leaflet circulated so widely last year referring to extremely attractive tax free saving schemes in the Post Office.