Dáil Éireann debate -
Wednesday, 7 Nov 2001

Vol. 543 No. 3

Written Answers. - Pension Provisions.

Bernard J. Durkan

Question:

24 Mr. Durkan asked the Minister for Social, Community and Family Affairs the extent to which he proposes to improve payment in respect of widowers, old age pensioners and recipients of invalidity pensions to keep pace with inflation and the need to remove poverty traps or other obstructions; and if he will make a statement on the matter. [26856/01]

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

As the Deputy will recall, the budget last December provided for a £10 or 12.70 per week increase for pensioners over 66; an additional special increase of £2.90 or 3.68 per week, giving a total increase of £12.90 or 16.38, for widow's contributory pensioners aged over 66 years; and an £8 or 10.16 increase for recipients under 66. The £10 or 12.70 increase for pensioners represented an increase of between 10.4% and 11.7%, while the £8 or 10.16 general increase represented an increase of between 9% and 10.5%. These increases are substantially in excess of inflation, which is forecast to be 4.5% this year.

Since this Government took up office, social welfare payments have been substantially increased in real terms. For example, social welfare pensioners aged 66 years and over have received total increases of between 38% and 41.2% compared with an increase of 16.4% in the cost of living during the same period. In addition, we have already brought forward the date of increases in weekly rates of payment so that they coincide with the commencement of the tax year. This position will be maintained in the context of the alignment of the tax and calendar year from January 2002. This will mean that increases in weekly rates will take place a full 23 weeks earlier than when we came into office. The progressively earlier payment of increases must be taken into account when assessing the real level of increases provided by this Government over its period of office.

The Government is committed to increasing, in 2002, the rate of widow's contributory pension for those aged over 66 to the rate of old age contributory pension; increasing qualified adult allowance to 70% of personal rate, also in 2002; increasing old age pensions in line with average industrial earnings increases; and making substantial progress towards £100 or 126.97 for the lowest rates of social welfare. My priorities for Budget 2002 will include making further progress towards implementing these commitments and responding where possible to the various proposals and concerns brought to my attention during the course of the budget process, having regard to the available resources.

Question No. 25 answered with Question No. 8.