Vol. 456 No. 4
24 Dr. O'Hanlon asked the Minister for Social Welfare the reason applicants for old age pensions have their savings assessed at 10 per cent interest when many of them receive less than 1 per cent interest; if he will discuss with the financial institutions the provision of financial advice to ensure that pensioners receive the best possible rates on their investment; and if he will make a statement on the matter. [13412/95]
The means tests used to determine entitlement to all social assistance schemes include an assessment of the value of any capital or investments held by the applicant. The assessment rates vary depending on the scheme. For old age pension purposes an initial £200 of capital is disregarded, 5 per cent of the next £375 is assessed and the balance is assessed at the 10 per cent rate. The figure arrived at is then divided by 52 to obtain the weekly means and £1 is added to the weekly value thus calculated. The 10 per cent rate on capital, the purpose of which is to ascribe a national value to the capital owned, is broadly aligned to the representative yield on Government securities.
I am examining the possibility of rationalising the different methods of assessing the value of capital in the context of the commitment in the Programme for Competitiveness and Work to streamlining and standardising application and assessment procedures, including means testing, in respect of social welfare and other applicants for means tested State assistance.
