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Social Welfare Code

Dáil Éireann Debate, Tuesday - 26 July 2022

Tuesday, 26 July 2022

Questions (1191, 1192)

Richard Boyd Barrett

Question:

1191. Deputy Richard Boyd Barrett asked the Minister for Social Protection if she intends to raise the income limit for access to the State pension non-contributory to bring into the net those on semi-State pensions who cannot access living alone allowance, fuel allowance and the household benefits package due to being marginally over the limit but yet are under the poverty line and at serious risk due to the rise in the cost of living; and if she will make a statement on the matter. [39810/22]

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Richard Boyd Barrett

Question:

1192. Deputy Richard Boyd Barrett asked the Minister for Social Protection the number of persons on semi-State pensions that are unable to access the living alone allowance, the fuel allowance or the household benefits package due to being over the income limit for a State pension but below the poverty line; if she intends to extend the income limit further to bring these persons into the net given the cost-of-living crisis; and if she will make a statement on the matter. [39811/22]

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Written answers

I propose to take Questions Nos. 1191 and 1192 together.

Policy issues related to civil service and public service pensions are matters for my colleague, the Minister for Public Expenditure and Reform. My Department does not hold records for Semi-State pensions.

State Pension (Non-Contributory) is a means-tested payment for people aged 66 or over who do not qualify for the State Pension (Contributory) maximum payment rate based on their social insurance record. As such, all recipients of the State Pension (Non-Contributory) are subject to a means test. The system of social assistance supports provides payments based on an income need. This ensures that each recipient has a verifiable income need and that resources are targeted to those who need them most. A maximum rate is payable where a person has no or limited means, and tapering applies to the rate payable to those with modest or more substantial means, as there is an expectation that those with resources can, at least partly, contribute towards supporting themselves.

Primary weekly social welfare payments are intended to enable recipients to meet their basic day-to-day income needs. In addition, my Department also provides a range of other secondary payments, both cash and non-cash, on a weekly, monthly, or less frequent basis. The Living Alone Allowance is one of those secondary payments. It is not a scheme or a stand-alone payment, but rather it is a weekly supplement paid to people who are in receipt of certain social welfare payments and who are living alone.

The Fuel Allowance is also a secondary-type payment and a person must be in receipt of a qualifying long-term social protection type payment to receive the allowance. The criteria for Fuel Allowance are framed to direct the limited resources available to the Department in as targeted a manner as possible, and so it is focused on recipients of long-term social protection payments where an applicant satisfies a means test. People in receipt of such long-term supports are unlikely to have additional resources of their own and are more vulnerable to poverty, including energy poverty.

The Household Benefits Package (HHB) helps with the cost of electricity or gas bill and the TV licence. Only one person in a household can receive the package. The package is available to everyone aged over 70 (no means testing applies) and, therefore, a person aged over 70 and who is not in receipt of a State Pension may still qualify for HHB. A person aged between 66 and 69 who is not receiving a qualifying payment from the Department may still apply for the HHB package subject to satisfying a means test.

The means test involves calculating their appropriate weekly means limit. This limit is based on the current maximum rate of State Pension (Contributory) including any increases for age, living alone, and adult/child dependents plus €120. The weekly income limit is then compared to their weekly means as assessed in a means test. If their weekly means are less than or equal to their income limit, then they satisfy the means test and qualify for the Household Benefits Package subject to also satisfying all other qualifying conditions. Therefore, a person in receipt of a Semi-State pension may still qualify for HHB.

While the Department's schemes are reviewed on an ongoing basis, any further expansions to the State Pension (Non-Contributory), Living Alone Allowance, Fuel Allowance and HHB schemes would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.

Finally, the Department of Social Protection provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.

I hope this clarifies the matter for the Deputy.

Question No. 1192 answered with Question No. 1191.
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