The state pensions contributory and transitional include, where appropriate, an increase for a dependent spouse or partner. This increase is means-tested and a full increase is payable where a spouse's income is less than €100 per week, and reduced rates are payable until income exceeds €300 per week, up from €280 before the recent Budget. The decision is made on the basis of the income enjoyed by the qualified adult only. However, where capital or property (other than the family home) is jointly owned, then the qualified adult will be assessed with 50% of any actual/notional income or capital value deriving from that asset. The effect is that the qualified adult of a couple with capital of just under €116,000 will qualify for a qualified adult increase at the maximum rate of €200 per week provided the principal pensioner is also in receipt of state pension (contributory) at the maximum rate. Social Welfare legislation provides for the tapered withdrawal of the qualified adult increase until it is withdrawn where a couple has capital of €216,000 or more.
As set out in the Programme for Government, the policy in relation to the means-testing of qualified adult payments is to increase the income limits that apply in the means-test so that more people will qualify for the allowance. These limits are kept under review in a budgetary context. The issue of means-testing qualified adult payments for pensions is discussed in the Green Paper on Pensions, published on 17 October. Although this is an issue which cannot be looked at exclusively in a pensions context, as it applies to all social welfare payments, the consultation process on pensions will include discussion on the future status of qualified adults.