Dáil Éireann díospóireacht -
Thursday, 17 Feb 1994

Vol. 439 No. 1

Adjournment Debate. - Pension Review.

Mr. Deenihan

I wish to raise the decision to review the cases of 3,500 bachelors aged over 75 years who are in receipt of non-contributory old age pension. Perhaps the Minister will clarify the position because I understand it may be those pension entitlements will be reviewed. I understand that social welfare officers are reviewing the entitlement of 600 bachelors, over 75 years of age, on the western seaboard to non-contributory old age pension. This is a cruel and insensitive exercise. Most of the people concerned live alone in isolated rural areas, in poor housing conditions and frequently without much support because their relatives live away from home. In many cases they are dependent on the hospitality of their neighbours for survival and now they are subjected to this totally insensitive attack.

In the past a bachelor of more than 75 years of age may have accumulated some savings in order to be buried with dignity or in the event of having to spend his final years in a nursing home. He will now be penalised for saving. That is most unfair and is very difficult to explain.

These 600 bachelors, over 75 years of age, face the prospect of a visit from a social welfare officer. This is a source of worry for them, it will affect their health and result in much stress and tension.

I understand that the local officers were requested to measure the savings and to report same to the Department. This calls into question the whole attitude of this Government to those most vulnerable in our society. It is difficult to explain this measure which follows closely the attempted attack on widows in the past two weeks, on which the Government made a U-turn. I hope the Government will do likewise on this occasion. This is a cynical exercise by this Government particularly when one considers the amount of money it is spending on PR, on the employment of programme managers and advisers, on the provision of lavish offices throughout the city and on foreign visits. I agree some foreign visits are necessary but there appears to be many of them, sometimes with little meaning.

It is right that we should question the justice and fairness of the Minister's proposal. I appeal to the Minister to withdraw those 600 files. So far as I am aware some of these cases have been reviewed and a reduction has been made. Some of the people concerned are unaware of this but no doubt they will be informed by the Department. I appeal to the Minister to suspend this pilot scheme for the west immediately. No doubt, if it is successful it will be extended to all pensioners. This savings exercise is most unfair and is directed at the wrong section of the population, the most vulnerable, those living on the margins. Most of these pensioners depend on their old age pension to survive. I feel very strongly about this matter and I am sure Members in the Minister's party will bring the matter to his attention in the near future. On behalf of old age pensioners, the most vulnerable of people, I appeal to the Minister to reconsider this move.

Minister for Social Welfare (Dr. Woods)

I am glad the Deputy has got his information on the pilot study a little more accurate and that it is not a question of 3,500 people but a pilot study of up to 600 people. My Department will be spending £317 million in 1994 providing old age non-contributory pensions to 111,000 people over 66 years of age. Entitlement to this pension is based on a person's means.

My Department is obliged to ensure that people are paid their correct entitlements. Over two-thirds of old age pensioners are paid at the maximum rate. This indicates that they have little or no means. However, a pensioner's financial circumstances can change over time, following the initial investigation of the claim. In some cases pensioners could be due additional pension, while in other circumstances they may be entitled to a lower rate of pension, because of increased income. With the very large numbers of pensions in payment at any one time, my Department has to be selective in its review work. The current review is one of many review programmes on various schemes which are normally carried out during the year, as part of an ongoing process. At any given time there will be groups of social welfare recipients who have not had their means or household circumstances reassessed for many years.

The review, which involves several hundred pensioners, will indicate to management whether there is a need to extend this work. The review will identify a number of pensioners who are entitled either to an increase in their rate of pension, or to some additional allowances. My Department will ensure that any such additional payments due to pensioners are given to them with the minimum of delay. On the other hand some pensioners who have additional means will also be reviewed.

I can assure the Deputy that my Department's field officers are very experienced and will make every effort to complete the individual pension reviews as quickly and in as sympathetic a manner as possible.

The Deputy has indicated that any savings in this area will be extremely small. That is what one might have expected, but substantial savings from assessing estates are arising, for instance in the region of £2 million from a relatively small number of estates. It indicates that there are people with more substantial means to be assessed. My officers are required under the legislation, by the Public Accounts Committee who cross-examine them closely and by the auditor, to ensure that we are paying pensions in relation to means. In those circumstances they are obliged to establish that means are correct. It is not a question of small amounts of money. I expect that experienced officers will be particularly sensitive to the pensioners concerned.

The Deputy referred to bachelors. It appears that the male pensioners have the largest amounts of money and that is why the pilot study is being done in that area. The biggest amount of money is coming up in that area in relation to estates.

Mr. Deenihan

On the western seaboard?

Dr. Woods

That is what is happening.

The Dáil adjourned at 4.35 p.m. until 2.30 p.m. on Tuesday, 22 February 1994.