Dáil Éireann debate -
Thursday, 4 Mar 1999

Vol. 501 No. 5

Written Answers. - Social Welfare Benefits.

Bernard J. Durkan

Question:

49 Mr. Durkan asked the Minister for Social, Community and Family Affairs the plans, if any, he has to increase old age, widow's and widower's pensions in excess of that announced in An Action Programme for the Millennium, having particular regard to increased household maintenance, management and other costs; and if he will make a statement on the matter. [6462/99]

Bernard J. Durkan

Question:

102 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will review the old age, widow's and similar pensions with the objective of identifying annual budgetary increases of a more substantial nature in order to provide for higher costs of living; and if he will make a statement on the matter. [6577/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 49 and 102 together.

This Government is committed to a strong social welfare pension based on social insurance, including the achievement of an old age pension rate of £100 per week by 2002.

An important step towards achieving this objective was taken in Budget 1999 which delivered increases of £6 in personal pension rates – well above the average inflation rate and, when taken together with the improvements in budget 1998, represent an increase of £11 per week since this Government came into office.

From June the weekly rate of the old age – contributory – or retirement pension will represent 124 per cent of the main rate recom mended by the Commission on Social Welfare, while the weekly rate of the widower's – contributory – pension will be 114 per cent. The maximum rate of both the old age and widower's – non-contributory – pension will be 109 per cent of the commission's recommended rate.

The Pensions Board, in its report entitled Securing Retirement Income, recommended that social welfare pensions should be increased in line with prices at a minimum and that it would be desirable to aim, over a five to ten year period, to increase social welfare pensions, to 34 per cent of average industrial earnings.

The Government has noted the recommendations of the board and considers that the question of increases in the rates of social welfare pensions and the PRSI financing implications of these will be examined in the context of the overall budgetary situation and economic climate.