Vol. 503 No. 4
40 Ms O. Mitchell asked the Minister for Social, Community and Family Affairs if he will increase the disregarded income threshold for eligibility for non-cash benefits applicable to public service pensioners who paid the modified PRSI rate from contributory pension plus £30 to contributory pension plus £100; and if all pensioners over 75 will be eligible for these benefits. [8028/99]
The free travel scheme is available to everyone resident in the State aged 66 and over regardless of income. The other free schemes such as free electricity allowance, free telephone rental allowance and free television licence are available to those, usually aged 66 and over, who are in receipt of a social welfare type payment and who are either living alone or who otherwise satisfy this condition. Widows and widowers between the ages of 60 and 65 whose late spouses had been in receipt of the free scheme benefits retain that entitlement.
Since July 1996 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 per sonal rate of old age contributory pension, which from June will be £89 for a recipient aged 66 to 70 years and £94 for a recipient aged 80 and over, plus £30 and any increases for a qualified adult, dependent children, living alone, as appropriate. The make-up of this income limit means that it will increase automatically each year on foot of budget increases in pension rates. Major increases were granted in the last two years. This means that a single pensioner living alone can have an equivalent weekly income of £125 and qualify for the free schemes. A pensioner living with a qualified adult can have an equivalent weekly income of £174.50 and qualify for the free schemes. These exemption limits are reasonable. The schemes were further extended in June 1997 to allow those aged 75 and over who are in receipt of a qualifying payment or who satisfy the means test to qualify without reference to the composition of their household.
The following table shows the estimated number aged 75 and over who are not in receipt of the free scheme benefits. They include those living in a household that already receives the free scheme benefits – the allowances are per household, not per person; and those not in receipt of a qualifying payment or above the means threshold. There is also the issue of take-up.
Table
|
Free electricity/gas allowance and freetelevision licence |
71,200 |
|
Free telephone rental allowance |
83,000 |
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. During the years they have been developed and extended on an ad hoc basis which has led to increasing pressure for further extensions.
A major review of the schemes has recently commenced to assess whether their objectives are being achieved in the most effective and efficient manner. A fundamental issue is the underlying rationale for these types of schemes and their effectiveness in overcoming poverty and social exclusion. The review is being undertaken by the Policy Institute, TCD in association with the Department. It is expected that it will be completed and published by the Policy Institute this year. The conclusions will be considered in a budgetary context, as appropriate.
I am aware that improvements have been made during the years to extend the schemes or non-cash benefits as they are called to various groups. There is, however, a small and diminishing group of public service pensioners who because they paid modified PRSI are probably the only group who do not qualify. Those on considerably higher incomes, such as those in receipt of occupational and social welfare pen sions, qualify for payments. The Minister mentioned that the income threshold was raised in 1997 to the maximum personal rate of old age contributory pension plus £30. Would he consider increasing that by £100 to include older people over 80 years of age whose health is diminishing and who are distressed by the prospect of not being able to meet bills they have paid all their lives?
I am sure the Minister agrees there is something inherently wrong when people who gave their lives to the public service, who still pay tax and PRSI, including training, employment and health levies until recently, cannot benefit from that from which the rest of the population of a similar age benefits. They are a small and diminishing group. Perhaps the Minister would examine the matter because I know it causes great hardship for public service pensioners, and it is only public service pensioners—
The Deputy should ask a question. I am concerned about how few questions are dealt with during Question Time. Members should ask brief and specific questions because the purpose of Question Time is to elicit information from the Minister.
The Minister gives long replies.
I seldom have the opportunity to contribute so I try to make the best of every question.
I thank the Deputy for her remarks. I accept that changes made over the years have created pressure and I acknowledged that in my reply. It is one of the reasons we have initiated this review of free schemes. There will always be pressure to widen such schemes. One of the reasons the Minister for Finance made dramatic changes in the tax treatment of old age pensioners was to care for those not in receipt of social welfare payments. This relates to the issue of the treatment of old age pensioners. The additional benefit to them of the free schemes, on top of the £89 they will receive from June, is about £11 on average, so it is substantial.
We have dramatically increased the old age pension in the past two years which has increased the threshold below which people will benefit from the free schemes if they are eligible for them. A single person living alone with the equivalent weekly income of £125 will qualify, as will a couple or a pensioner living with a qualified adult with an equivalent weekly income of £174.50.
I accept that, but does the Minister agree that an income of £125 for an 80 year old with no medical card is small and that these small aids by way of fuel allowances and telephone rental allowance can make a significant difference to their quality of life and peace of mind?
Since I was elected to the House, I have been a firm believer in assisting people in their latter years. I will bear in mind the issue the Deputy raised when we examine the matter.
