Dáil Éireann Debate, Tuesday - 9 April 2024
794. Deputy Colm Burke asked the Minister for Social Protection if she will give due consideration to raising the income thresholds for the State pension (non-contributory) to take account of inflation; and if she will make a statement on the matter. [14863/24]
View answerThe Department of Social Protection provides income supports through a mixture of contributory payments (which are based on a person's social insurance record) and means-tested social assistance payments. The State Pension (Non-contributory) is a means-tested payment for people aged 66 and over, habitually residing in the State, who do not qualify for a State Pension (Contributory), or who only qualify for a reduced rate contributory pension based on their social insurance record. The system of social assistance supports provides payments based on an income need. The means test plays a critical role in ensuring that the recipient has a verifiable income need and that resources are targeted to those who need them most.
Social welfare legislation provides that means tests take account of the income and assets of the person (and their spouse or partner, if applicable) applying for the relevant scheme. The means assessment includes income from sources such as employment, self-employment, occupational pensions and maintenance payments. It also includes property owned, other than the family home, and capital such as savings, shares, and other investments. Income earned under the rent-a-room tax relief scheme is exempt from the means test.
An applicant can have savings or assets of up to €20,000 and earnings of up to €200 per week from paid employment and still qualify for a full State Pension (Non-Contributory). The first €30 per week of means does not affect the rate of the pension. After that first €30, your pension is reduced by €2.50 for every €2.50 of means. If a person’s assessed weekly means is over €292.51, they will not be eligible to receive a State Pension (Non-Contributory) Pension.
Increasing either the income disregards for the State Pension (Non-Contributory) may have significant cost implications and would need to be considered in an overall budgetary and policy context.
I have committed to carrying out a broad review of means testing. This will include consideration of means test provisions such as income thresholds for the State Pension (Non-contributory).
I hope this clarifies the matter for the Deputy.
