Vol. 503 No. 4
77 Mr. Durkan asked the Minister for Social, Community and Family Affairs the extent to which he anticipates the need for substantial increases in widows' and old age pensions; and if he will make a statement on the matter. [8674/99]
As stated in An Action Programme for the Millennium, this Government is committed to 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 all personal pension rates – well above the average inflation rate and, when taken together with the improvements in budget 1998, represents an increase of £11 per week since this Government came into office.
From June the weekly rate of the old age contributory and retirement pension will represent 124 per cent of the main rate recommended by the Commission on Social Welfare, while the weekly rate of the widow(er)'s contributory pension will be 114 per cent. The maximum rate of both the old age and widow(er)'s non-contributory pension will be 109 per cent of the commission's recommended rate.
The Pensions Board in its report Securing Retirement Income recommended that social welfare pensions should be increased in line with prices at a minimum and, ideally, in line with earnings, and that it would be desirable to aimover 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 in this regard 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.
