According to the 1996 census, there were more than 174,500 people over 75 years of age when the census was compiled. In 1995-96 more than 152,000 people over 75 years of age were in receipt of a social welfare pension from my Department; therefore, coverage of this age cohort is estimated to be 87 per cent. The remaining 13 per cent would include qualified adults of social welfare recipients and those who do not qualify for a contributory pension or have not met the means test for a non-contributory pension.
The Government is committed to the social insurance system and on foot of the extension of this system over the past ten years, the role of contributory – PRSI related – pensions will increase in the future. It is not known, of those who are not receiving a payment from my Department, how many are in receipt of pensions from other sources, that is, occupational pensions or social security pensions from other countries.
In my budget speech, I announced that my Department will carry out a comprehensive review of the qualifying conditions for the old age contributory and retirement pensions. This review will pay particular attention to the operation of the yearly average qualifying condition, including the possibility of using contributions paid prior to 1953. The issues involved are complex and raise fundamental questions regarding the number of contributions, both paid and credited, of a person. Issues of equity and redistribution within the social insurance system also need to be addressed.
The free schemes, such as the free electricity and free telephone rental allowances and free television licence, are available to people, usually aged 66 or over, who are in receipt of a welfare type payment and who are either living alone or who otherwise satisfy this condition. In addition, widows-widowers between the ages of 60 and 65, whose late spouses had been in receipt of the free schemes, retain that entitlement. The free schemes are also available to low income pensioners who are not in receipt of a social welfare type pension and who satisfy a means test. The weekly means income limit fixed for this purpose is the maximum personal rate of old age contributory pension, which is currently £83 for a recipient aged 66 to 79 years and £88 for a recipient aged 80 years or over plus £30 plus any increases for dependants or living alone. In order to qualify for the free schemes, a person must be living alone or only with certain other people who satisfy this condition. This condition is not, however, applied in the case of persons aged over 75 years who are in receipt of a qualifying payment.
Regarding the estimated number of people over age 75 who are not in receipt of the various free schemes, 71,200 people do not receive the free electricity or gas allowances and the free television licence while 83,000 do not receive the free telephone rental allowance. The reasons for this include a person living in a household that already receives the free schemes – the allowances are per household and not per person; a person not in receipt of a qualifying payment or above the means threshold, and issues related to take up.
The free schemes were originally designed to benefit mainly older people in receipt of a social welfare type payment who were living alone and required additional assistance. However, over the years, additional categories of people have been included. A fundamental review of the free schemes has commenced in order to assess whether the objectives of these schemes are being achieved in the most efficient and effective manner. It is hoped this will be completed by mid-year.