I propose to take Questions Nos. 511 and 514 together.
The Programme for Government features a number of commitments in relation to social welfare pensions, including a commitment to increase the basic State pension to €300 per week by 2012. Progress towards this target was announced in last week's Budget, where the State Pension (Contributory) was increased by €14 per week, bringing it up to €223.30 per week. An increase of €12 per week was granted on the State Pension (Non-Contributory), bringing it up to €212 per week.
Over the last number of Budgets, pension increases have been well ahead of inflation ensuring that not only is the real value of pensions maintained but that they are significantly improved in real terms. This is clearly evident in the recently published EU Survey of Income and Living Conditions (SILC) which showed that the position for older people improved significantly from 2005 to 2006, with the ‘at risk of poverty' rate falling from 20.1% to 13.6%. Furthermore, the number of people aged 65 and over at risk of poverty was significantly lower than for the general population, where 17% are considered to be at risk of poverty.
While various studies use different measures of calculating income needs the policy in relation to support for pensioners has been, for many years, to give priority to increasing the rates of pension payable to all pensioners rather than targeting individual groups such as those that are living alone. The most recent SILC figures show that this approach has resulted in a very significant reduction in the poverty risk for older people in general. This approach was continued in Budget 2008 and the position will be kept under review.