asked the Minister for Social Welfare if he is aware that those in receipt of statutory pensions and non-contributory pensions are reduced in the latter when they get an increase in statutory pension and consequently receive no cost of living increase; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Old Age Pensions.
109.
Non-contributory pensions are subject to a means test and in accordance with the statutory rules for the calculation of means all income in cash, with certain specified exclusions, which a person may reasonably expect to receive is assessable as means. Statutory pensions and increases therein come within that category. Consequently, adjustment of non-contributory pensions payable by my Department becomes necessary following the granting of increases in statutory pensions. There are, of course, provisions which ensure that such adjustment cannot bring about a reduction in non-contributory pension which is greater than the increase in the statutory pension. I do not accept that as a consequence the pensioners concerned receive no cost of living increase, since non-contributory pensions, in common with other social welfare benefits, have been increased annually by amounts which have more than compensated for increases in the cost of living.
110.
asked the Minister for Social Welfare if he will abolish the means test for old age pensions.
The purpose of the means test for old age pensions is to endeavour to ensure that the available resources are directed only to those in need and that those most in need get most assistance. I would not be justified in recommending to the Government that legislation to provide for its abolition should be introduced at present.
What reasons are there for this?
There are the very good reasons that the Deputy has been given at all times. We do not regard the amount being paid to those in need as being sufficient. If I had the £15 million necessary to abolish the means test I would prefer to give the extra money to those who need it most.
Will the Minister abolish the means test when the £30 million in savings comes to us as a result of our EEC membership?
There are many things to be done with that money.
I understand the amount now is to be £20 million.
Will the Minister keep this matter under constant review? There are many people who believe they are entitled to the old age pension but who, because of the ridiculous means test, are not considered eligible for it. The Minister realises that the administration of the means test must cost a substantial sum of money and for that reason alone it should be abolished.
The Deputy must not make statements at Question Time.
I do not like the means test any more than the Deputy likes it but I would prefer to see it disappear into a comprehensive scheme of social insurance.