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Dáil Éireann debate -
Tuesday, 12 Nov 1996

Vol. 471 No. 4

Written Answers - Pension Eligibility.

Mildred Fox

Question:

245 Ms M. Fox asked the Minister for Social Welfare the plans, if any, he has to abolish means testing for old age pensions in view of the fact that some elderly people are avoiding financial institutions due to the means-testing, resulting in increased attacks on the elderly in rural areas; and if he will make a statement on the matter. [21009/96]

The function of the means test in social welfare assistance payments is to direct resources towards people in greatest need and I have no plans to abolish it. The means test applied in determining entitlement to an old age (non-contributory) pension includes an assessment of the value of any capital or investments (other than the family home) held by the applicant. The purpose of this assessment is to ascribe a national value to the capital owned and, at present, different methods of assessment apply in the various social assistance schemes. These provisions are currently being reviewed in my Department with a view to devising proposals for a standard method of assessment of capital for all social assistance payments. In view of the substantial costs involved, however, any changes in this area would have to be considered in the context of available resources.

The Deputy will be aware that I established a special Task Force on Security for the Elderly earlier this year to consider the security needs of the elderly. Subsequently, £2 million in grants was made available by the Department to voluntary groups to support the installation of security equipment. This £2 million is currently being allocated to over 400 voluntary organisations throughout the country who have applied to the Department for assistance in providing security systems for 11,000 vulnerable older people. A further £1 million has been allocated to meet increased take-up of free telephone rental allowance as more pensioners elect to have phones installed for security reasons.

I also recently, in a joint venture with my colleague the Minister for Justice, launched a security information pack for older people and a free phone helpline in the week of the launch. This information pack is the latest in a series of measures arising from the Task Force on Security for the Elderly.
I would like to reiterate that a person in receipt of a means-tested pension can have substantial savings and still have an entitlement to a pension and extra benefits such as free electricity and free TV licence. For example, a pensioner with savings of up to £2,987.50 (£5,975 if married/cohabiting) is entitled to full rate old age (non-contributory) pension if he/she has no other sources of means. A pensioner with savings of up to £35,227.50 (£70,455 if married/cohabiting) is entitled to a minimum rate of old age (non-contributory) pension if he/she has no other sources of means.
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