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Dáil Éireann debate -
Tuesday, 26 Feb 2002

Vol. 549 No. 3

Written Answers. - Pension Provisions.

Richard Bruton

Question:

58 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if he has considered the introduction of a pension supplement payable only to those who are solely dependent on an old age contributory or non-contributory pension; and if he will make a statement on the matter. [6291/02]

The overall policy being followed in relation to support for our older people has been to commit resources to improving the position of all pensioners through significant increases in personal pension rates. Our 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 and the old age (non-contributory) pension increase to €134.00 per week. Overall increases in old age pension rates since this Government came into office amount to between 37% and 49%.

Other improvements made in the area of pensions include changes in the assessment of capital under the means tests for non-contributory payments. There have also been significant improvements in the area of the free schemes.

Increasing pension rates is the most effective way of improving the position of all pensioners. The suggestion from the Deputy entails a more targeted approach with additional means testing required to identify those who might benefit. This is not something which has been considered to date as apart from increasing rates the approach has also been to reduce reliance on means tested benefits.

Improvements for old people will remain one of the major priorities for the Government and the most effective way of meeting their needs will be kept under review in the context of future budgets.

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