Since July 1996 the free schemes are 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, currently £96 for a recipient aged 66 to 79 years, and £101 for a recipient aged 80 years or over, plus £30, plus any increases for a qualified adult, dependent children, living alone, as appropriate. The make-up of this income limit means that it increases automatically each year on foot of the budget increases in pension rates.
A review of the free schemes of this Department was published in April of this year. The review was carried out to assess whether the objectives of these schemes are being achieved in the most efficient and effective manner. The review included an examination of the qualifying conditions for the schemes, the target groups and the scope for alternative policy arrangements.
A core issue was the underlying rationale for schemes of this type and their effectiveness in overcoming poverty and social exclusion.
One of the recommendations arising from the review was that free schemes should be extended to all people over 75 years, regardless of income or household composition. As the Deputy is aware, in this year's budget I provided funding for the implementation of this recommendation with effect from October 2000 at an estimated cost of £1 million for this year and £4 million in a full year. The purpose of this measure is to recognise the value of older people in our society and to support them to remain active in the community.