Dáil Éireann debate -
Wednesday, 2 May 2001

Vol. 535 No. 2

Written Answers - Pension Provisions.

Noel Ahern

Question:

186 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs if he will comment on the situation which has arisen following the granting of the £15 increase to old age pensioners' dependant spouses; and, noting his policy to bring all spouses up to noncontributory old age pension rate, if he will maintain a £5 margin for spouses with record of reduced contributions in order to keep them ahead of dependent spouses; and if he will make a statement on the matter. [12520/01]

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

In Budget 2001 the Government announced its intention to increase the qualified adult allowance, QAA, for those aged 66 or over to the same level as the personal rate of the old age (non-contributory) pension, currently £95.50 per week.

The increase of £15 per week in the QAA announced in the budget is the first step in this process. The measure is intended to improve the position of women who do not qualify for a pension in their own right and is designed to complement administrative individualisation which will allow for direct payments to a qualified adult. Issues surrounding administrative individualisation are currently being examined by a working group set up under the PPF.

In general, a qualified adult allowance is paid at a lower rate than the personal rate. However, in the case of some reduced rate contributory pensions not including pre-53 or over-56 self employed pensions the QAA is actually being paid at a higher rate than that being paid in respect of the pensioner. In these cases the personal rate is reduced to reflect the average level of contributions paid but the full rate QAA was being paid. The proposals announced in Budget 2001 in relation to the QAA would worsen this anomaly.

In the circumstances, I introduced measures in the Social Welfare Act, 2001 to deal with the situation. From April 2001 the QAA payments in all new cases will reflect the rate at which pensions are awarded. For instance, if a person is awarded a pension at half the full personal rate the qualified adult will also be paid at half the full QAA rate.

These arrangements do not apply to existing cases where the QAA is being paid at a higher rate than the main payment. Instead, it was decided to slow the rate of increase. Accordingly, in these cases, the full QAA increase was not paid, instead, this group received an increase of £8 per week.

Frances Fitzgerald

Question:

187 Ms Fitzgerald asked the Minister for Social, Community and Family Affairs if he will extend the living alone allowance to pensioners who receive a pension from the UK; the cost of implementing this; and if he will outline his policy in this area. [12521/01]

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

The living alone allowance is an additional payment of £6 per week, to people aged 66 years or over who are in receipt of certain social welfare type payments and who reside alone. About one third of those receiving eligible payments are being paid the allowance.

There are approximately 90,000 people resident in Ireland receiving either an old age pension or a widow/er's contributory pension from the UK. While the number of these people who are living alone is not known, based on our experience with those receiving Irish pensions, the cost of paying the living alone allowance to them would be approximately £9.5 million per annum.

The allowance is an integral part of the Irish pension system which is paid as an additional allowance on our pensions. As such, it has no applicabilityvis-à-vis pension payments made under the social security regimes of other EU member states or countries with which Ireland has bilateral agreements.

Accordingly, there are no plans to change or expand the eligibility conditions along the lines suggested.