Vol. 401 No. 1
23 Mr. Creed asked the Minister for Social Welfare when the savings exemption for social welfare old age pensioners was introduced; the level at which it was introduced; the frequency with which it has been increased since introduction; the fluctuations which have occurred in interest on savings in that period; and if he will make a statement on the matter.
Applicants for old age pension who have capital are assessed with a notional income from the capital.
The formula for assessing the means in this case was originally provided for in the Social Welfare Act, 1952. The formula in current use, which was introduced in the Social Welfare Act, 1979, is set out in the Social Welfare (Consolidation) Act, 1981. It provides for disregarding the first £200 of capital calculating the next £375 at 5 per cent and the balance at 10 per cent.
In addition in 1975 provision was made for adding, where the means assessed from capital amount to at least £1 per week, an additional £1 a week to the weekly means.
Under the old age pension scheme there is an overall means disregard under which a person can have means from all sources of up to £6 a week and still qualify for the maximum pension. In the case of a married couple this would be £12 per week. This means that, under existing arrangements, a married couple could have joint capital of over £5,900 and still qualify for maximum pension. They could have joint capital of almost £58,000 and still qualify for a reduced pension.
