Seán Haughey
Question:823 Mr. Haughey asked the Minister for Social, Community and Family Affairs the measures he has taken since 1997 to improve the position of the elderly; and if he will make a statement on the matter. [1337/02]
Written Answers. - Services for the Elderly.
The Action Programme for the Millennium set a target old age pension rate of 126.97 by 2002. In the review of this programme, the Government committed to the early achievement of the 126.97 rate and, furthermore, extended it to other social welfare pensions. This target was achieved one year ahead of schedule in the case of old age contributory pension and widow's contributory pension and was achieved in this year's budget for old age non-contributory pension. The improvements announced in Budget 2002 saw the old age (contributory) pension increase to 147.30 per week, the old age (non-contributory) pension increase to 134.00 per week and the widow(er)'s contributory pension for someone over 66 years of age increase to 144.80 per week. The Government is also committed to increasing the rate of the widow(er)'s contributory pension to same level as the old age (contributory) pension and significant progress has also been made in this regard in recent years.
Overall increases in old age pensions since 1997 amount to between 33.02 and 48.29 per week or 37% to 49%. The personal rate of contributory pensions has increased from 27% of average earnings in 1997 to a projected 31% in 2002. As announced in last year's budget, I intend to increase the payment for qualified adults, aged 66 or over to same level as the personal rate of the old age non-contributory pension. This process commenced in Budget 2000 with special increases of 19.05 granted. In Budget 2002 increases of up to 12.70 were granted to qualified adults over 66 years of age. This Government is committed to ensuring the widest possible coverage for contributory pensions. In recent years more flexibility has been introduced into the qualifying conditions for the old age contributory pension scheme including a reduction in the average number of contributions required for pension purposes to 10. Arrangements were also introduced to cater for particular groups who would not otherwise qualify for a pension.
A special old age contributory pension was introduced in April 1999 for those self employed people who were aged 56 or over in April 1988 when compulsory social insurance was introduced for this group. These could not satisfy the basic requirement of having entered insurance 10 years before pension age. The pension is paid to those who have at least 5 year's contributions paid. Payment is at a flat-rate of 50% of the standard maximum rate with equivalent increases for adult and child dependants.
In 2000 a special flat-rate old age contributory pension, payable at 50% of the maximum personal rate was introduced for any person who became insurably employed prior to 1953 and who, due to the yearly average rule, failed to qualify for pension or qualified for a pension at less than 50% of the standard maximum rate. To qualify, a person must have paid at least 260 contributions which may comprise all pre-53 contributions or a combination of pre and post 1953 insurance. Applications for this special pension are still being processed but at this stage over 9,000 have been awarded a pension while 8,500 existing pensioners who were receiving pro-rata pensions at less than 50% of the full personal rate have also benefited.
Also in 2000 I introduced significant improvements in the structure of the rates band under the old age contributory and retirement pensions which involved a reduction in the number of different rates payable. As a result all payments were reviewed and some 38,000 pensioners, who were on reduced rate old age contributory and retirement pensions saw their position improved. Other improvements made in the area of pensions include changes in the assessment of capital under the means tests for non-contributory payments and the extension of tapering of the qualified adult allowance to recipients of the old age contributory and retirement pensions. This latter measure involves a more gradual withdrawal of the qualified adult allowance where the qualified adult has an independent income. The current gross income range for a qualified adult is between 88.88 and 196.81.
Significant improvements have also been made in the area of the free schemes. In October 2000, the free schemes were extended to all people over 75 years of age regardless of their income or household composition and the qualifying age was reduced to 70 years of age with effect from May 2001. Free electricity allowance and free TV licence schemes were also extended to qualified carers with effect from October 2000. The number of units on electricity-gas allowance will increase from 1,500 units per annum to 1,800 units per annum from February 2002. The qualifying conditions for all the schemes are being standardised from May 2002 and this will mean that those who qualify will receive the full range of schemes available under these three schemes. Last year's budget extended the free fuel scheme by three weeks to 29 weeks. Improvements for the elderly have been one the Governments main priorities since taking office and very significant progress has been made this area.