Vol. 522 No. 2
341 Mr. Finucane asked the Minister for Social, Community and Family Affairs his views on whether it is fair that a person (details supplied) in County Tipperary, who is in receipt of a non-contributory pension and who recently won £17,000 in the winning streak lottery was requested to return her pension book and a weekly deduction is being made from her pension. [18347/00]
The person concerned, who is currently in receipt of an old age non-contributory pension at the rate of £79.50 per week, informed the Department on 4 January, 2000 that she won a car and £17,000 in the winning streak lottery show. She accepted £10,000 cash in lieu of the car and therefore received a total of £27,000 in cash. Having purchased a car and carried out house improvements, etc., the person concerned was assessed with means of £10.09 per week from the £9,000 balance retained. This resulted in a reduction of £6 per week in her rate of old age non-contributory pension.
Old age non-contributory pension is a means tested payment and all sources of income are assessed as means. However, the actual income received, £27,000 in this case, was not assessed.
Instead, the balance retained, £9,000, was treated as capital and assessed under a standard formula. Under the current formula used to calculate means from capital, the first £2,000, single or widowed, is disregarded and the next £20,000 is assessed at 7.5%.
Significant improvements will be introduced shortly to the manner in which means from capital is assessed. With effect from 13 October 2000, the first £10,000 of capital will be disregarded in the case of single or widowed pensioners, £20,000 in the case of a couple.
The claim of the person concerned will be reviewed in advance of 13 October, 2000 and she will be informed of the outcome in due course.
