If he is under 70 years, the medical condition comes into it. If he is over 70 years, that is not a necessary condition. Certain items of means are taken fully into account in calculating the amount of the special allowance while others are taken into account only in part and others are ignored. I circulated with the Official Report in reply to a question some time ago the main items taken into account and the main items ignored in that respect. Perhaps I should give them again now in view of the fact that this question has been raised.
The principal items taken into account are: value of house, plot or farm; the value of capital—the first £25 is disregarded; the next £375 is taken at 1/20th of the total and the remainder at 1/10th. One half of the amount of disability benefit payable under the Social Welfare Acts is taken into account. The amount of wages, profit from trade or business or other cash income is taken into account. In the case of an unmarried person one shilling a week of the non-contributory old age pension of 28/6d. a week and 12/6 a week of the contributory old age pension of £2 a week is taken into account.
In the case of a married person 19/6d. a week of the second pension, where both the person and the spouse are in receipt of a non-contributory old age pension of 28/6d. a week, is taken into account. In the case of a married person who has a contributory old age pension and supplementary allowance for the spouse, 31/- a week of the combined amount of £3 8s. 6d. a week is taken into account. In the case of a military service pensioner or a person holding a disability pension, wound pension or Connaught Rangers' pension, the amount exceeding £30 of such a pension or combination of pensions is taken into account where the person is under 70, but the first £30 is not taken into account. The entire amount is taken into account, however, where the applicant is over 70 because it has already been ignored for old age pension purposes. In no cases, however, are the increases in pensions granted in 1959 and 1960 taken into account. They are ignored in all cases.
The value of free maintenance, where that does not impose any hardship on the giver, is taken into account, but if it can be shown there is a hardship on the person providing the free maintenance, then it is not taken into account. The value of free lodging is taken at £3 18s. 0d. per annum; and the profit from the contributions of members of a family who are employed and live at home, is assessed on a scale. If there is a son or daughter working and living at home and contributing to the household, the amount of his or her contributions is not taken into account, but what is estimated as the profit from their contributions is taken into consideration. If the contribution is under 30/-, no profit is assumed to arise and nothing is taken into account; if it is between 30/- and 35/- 2/- is taken into account; if it is between 35/- and 40/- 3/- is taken into account; if it is between 40/- and 42/-, 4/- is taken into account; if it is between 42/- and 44/-, 5/- is taken into account; if it is between 44/- and 46/-, 6/- is taken into account; and anything over that is 6/- plus the amount by which the contribution exceeds 46/-. That is in respect of urban areas.
For rural areas there is a similar but slightly different scale. If the children concerned are under 18 years of age and the contribution does not exceed £28 14s. 0d., no amount is taken into account; if it is between £28 14s. 0d. and £39 2s. 0d., the actual excess over £28 14s. 0d. is taken into account; if it exceeds £39 2s. 0d. a year, then £10 8s. 0d. is taken into account, plus the profit from contributions as I already mentioned.
The principal items not taken into account are: children's allowances under the Social Welfare Acts; public assistance; free maintenance, as I have said, where it imposes hardship on the provider; maintenance in a hospital, sanatorium or county home—old age pensions are not taken into account except in the manner I have already mentioned—Gaeltacht grants, blind welfare grants; infectious diseases maintenance allowances and disabled persons maintenance allowances.
With regard to the question of old age pensions it is not true to say that, as a result of the adjustments made in the special allowances, anybody receiving a contributory old age pension received less than he did previously. I explained that up to the 6th January, 1961, only non-contributory old age pensions were payable. They were at the maximum rate of 28s. 6d. per week. For special allowances, one pension was completely ignored when assessing means. If there were two pensions—if the man and his wife both had old age pensions—one was completely ignored and the second taken into account as means to the extent of 24s. per week.
As from the 6th January, 1961, however, contributory old age pensions became payable for the first time to persons who had the necessary insurance contributions. Two pounds a week is the contributory old age pension and in the case of a married person the supplementary allowance is £1 8s. 6d. As a result of that, there was a revision of the means adjustment for special allowances. From that date also the appropriate annual sum for special allowances was increased by £13 a year, except in one particular type of case where the increase was £36 10s. 0d. a year. That was under the recent Army Pensions (Increase) Act, 1961.
The means test was revised as follows: in the case of a married person who himself had a non-contributory pension—as I said it is in this class most of the special allowance holders with old age pensions are included, because only a comparatively small number qualified for a contributory old age pension—but whose spouse had not, he received prior to the 6th January, by way of pension plus special allowance, approximately £3 6s. 0d. a week. The non-contributory pension was completely ignored as means in the assessment of the special allowance. But if as from the 6th January, 1961, he was still not qualified for a contributory pension but continued to be eligible for a non-contributory pension only, the appropriate annual sum in that case was increased by £36 10s. 0d. a year—giving him approximately £4 a week by way of an aggregated pension and special allowance. That is a person with a non-contributory pension whose spouse had not got an old age pension.
Where a person, prior to 6th January, 1961, had a non-contributory pension and his wife also had one, the position was as I have already stated —that the second pension was assessed as means to the extent of 24/- a week and income by way of aggregated and special allowance was £3 10s. 6d. a week. Now, if as from 6th January, 1961, that person still continued to be ineligible for a contributory pension, the means test was altered so that the second non-contributory pension was assessed to the extent of 19/6d. a week only, and that, taken in conjunction with the increase in the appropriate annual sum of £13, brought him also to approximately £4 by way of combined pension and special allowance. So it is obvious that in both of those cases there was an improvement in the total means.
In the first case, the previous means were £3 6s. a week. That was raised to £4 a week and in the second case, the total means were £3 10s. 6d. previously, and by means of the combination of the change in the means test and the increase of £13 in the appropriate annual sum, that was also raised to £4 per week.
With regard to contributory pensions, where a person became eligible, from 6th January, 1961, for a contributory pension of £2 a week and the supplementary allowance was £1 8s. 6d. a week for his spouse, it was decided that 31/- of the £3 8s. 6d. would be assessed as means so that he would, having regard to the increased annual sum, receive £4 a week approximately by way of combined pension and supplementary allowance and special allowance. That is what has been done for married couples—to equalise the position. By giving a greater increase in the case of a non-contributory pensioner and by taking 31/- of the £3 8s. 6d. into account in the case of the contributory old age pensioner, we have equalised the position of these two classes.
With regard to unmarried persons, up to 6th January, 1961, the person who had a non-contributory pension had £2 18s. 6d. a week approximately by way of special allowance or pension combined. It was the position at that time that the old age pension was not taken into account as means. If since 6th January 1961, he was still eligible for a non-contributary pension only, there was an increase of approximately 5/- a week in the appropriate annual sum and 1/- of the pension was taken into account as means thus giving him £3 2s. 6d. a week between combined pension and special allowance. If such a person became eligible for a contributory pension of £2 a week from 6th January 1961, then 12/6d. of that pension is taken into account as means and that, taken in conjunction with the 5/- a week increase in the appropriate annual sum, gives him also £3 2s. 6d. approximately, between pension and special allowance.
It will therefore be seen that in all cases the total income has been increased, that is, a total increase from the combined pensions and special allowance. As I say, it happened in some cases, for instance where a person became eligible for a contributory pension of £2 and supplementary allowance of £1 8s. 6d., the special allowance fell to be reduced and in some cases was discontinued. But so far from there being a loss in the total income, the contrary was the case in all instances.
I agree that this is a rather involved matter but this should make it clear what the position is with regard to these contributory old age pensions. Regard had to be had to the fact that the special allowance was not something that a person is automatically entitled to because of his service but something introduced to relieve hardship. While it is true that some people will have their special allowances reduced, because of the contributory old age pensions the fact is that because of the increase in the appropriate annual sums that were introduced in the Army Pensions Bill, 1961, a number of new people became eligible for special allowances for the first time, and of course all those who did not qualify for contributory old age pensions, either because they had not reached the age or had not got the contributions, also received increases. The total cost of all those increases is £75,000 approximately per annum.
From 6th January, 1961, also, special allowance holders under seventy received an increase of 5s. a week in their special allowance and in addition to that, there is an increase in the child's allowance from £10 8s. to £11 14s. a year. The total cost of those increases is £75,000 per annum. I think the best possible use was made of the £75,000 in the way in which it was used. I do not think it——