Dáil Éireann debate -
Thursday, 8 Oct 1992

Vol. 423 No. 2

Written Answers. - UK Pensions.

Dinny McGinley

Question:

102 Mr. McGinley asked the Minister for Social Welfare if his attention has been drawn to the substantial reduction in income suffered by people resident in this country who are in receipt of United Kingdom retirement pensions and other allowances as a result of the declining value of sterling; and the steps he will take to alleviate their difficulty.

Minister for Social Welfare (Mr. McCreevy)

Persons in receipt of incomes from abroad by way of pension or otherwise can experience gains or losses depending on the ongoing exchange rates between the currency in which they are paid and the Irish pound. Many of those in receipt of pensions from the United Kingdom have experienced for some considerable time an improvement in income as their pensions gained in value during the period when the Irish pound remained below parity with sterling. It is only in very recent weeks that this advantage has been eroded.

Any person in receipt of a United Kingdom retirement pension whose means have changed as a result of the change in the value of sterling may be entitled to an old age non-contributory pension from my Department provided their means do not exceed IR £60 per week. A United Kingdom pensioner who is already in receipt of an old age — non-contributory — pension and whose means have dropped as a result is entitled to request a review of his or her means assessment at any time. In either case, if current unfavourable sterling-punt exchange rates persist, these will be incorporated in an average exchange rate system used by my Department to assess means.

People in receipt of United Kingdom pensions who are experiencing difficulty as a result of their income falling below the appropriate rate of supplementary welfare allowance for their family size should also contact the community welfare officer at their local health centre.

It is not yet clear if the current exchange rates between sterling and the Irish punt are a temporary phenomena or are likely to continue in the medium to long term. The matter in so far as it pertains to social welfare pensions is being kept under review.