Brian Stanley
Question:621. Deputy Brian Stanley asked the Minister for Social Protection her views on whether the living alone allowance should be accessed as income when calculating the income threshold for pensioners. [13484/21]
View answerWednesday, 10 March 2021
Questions (621, 622)
Brian Stanley
Question:622. Deputy Brian Stanley asked the Minister for Social Protection if she plans to gradually increase the income threshold for pensioners for entitlements in forthcoming budgets. [13485/21]
View answerWritten answers
I propose to take Questions Nos. 622 and 621 together.
The Department provides income supports through contributory payments (which are based on a person's social insurance record) and means-tested social assistance payments. Social welfare legislation provides that the means test takes account of the income and assets of the person (and spouse or partner, if applicable) applying for the relevant scheme.
The State Pension Contributory (SPC) is a contributory payment and, as such, is not means tested. A recipient of the SPC can claim an increase to their pension in respect of a qualified adult (IQA). A qualified adult is the spouse / partner of the pensioner who is being wholly or mainly maintained by the pensioner.
An increase for a qualified adult may be payable at the maximum rate of payment where the means of the spouse/partner are €100 a week or less, while reduced rates are payable where the means are over €100 and less than €310 per week. No increase is payable where the means of the spouse/partner are in excess of €310 per week.
The State Pension Non-Contributory (SPNC) is a means-tested payment for people aged 66 or over who do not qualify for the SPC based on their social insurance record.
As such, all recipients of the SPNC are subject to a means test. Social welfare legislation provides that all income and capital belonging to an applicant (and his or her spouse/partner, where applicable) is assessable for means testing purposes for social assistance schemes, such as the State Pension Non-Contributory (SPNC). This includes all income and property (other than the family home) belonging to the claimant.
To calculate the rate payable, the means of the claimant is deducted from the maximum rate of SPNC. In cases where the means of the claimant exceed the maximum rate, the claimant is not entitled to any payment.
SPNC recipients can earn up to €200 per week from employment without their rate of payment being affected. In addition, the first €30 of means from any source is also disregarded.
The living alone allowance is not taken into account in the means test for the SPNC or the means test for a SPC recipient's qualified adult.
Increasing either the income disregards for the SPNC or the income thresholds for an IQA on the SPC may have significant cost implications and would need to be considered in an overall budgetary and policy context.