Dáil Éireann díospóireacht -
Tuesday, 13 Jun 1995

Vol. 454 No. 3

Written Answers. - Social Welfare Benefits.

Eoin Ryan

Ceist:

163 Mr. E. Ryan asked the Minister for Social Welfare the plans, if any, he has to improve the pensions of senior citizens to keep them in line with inflation in view of the fact that many of the increases are used up by the increases in local authority rents. [10655/95]

Minister for Social Welfare (Proinsias De Rossa)

The rate of old age contributory pension and old age non-contributory pension increased by 559 per cent and 572 per cent respectively in the period 1975 to date while inflation, as measured by the Consumer Price Index, in the same period is estimated at 359 per cent, resulting in a real increase in the rate of pension of over 43 per cent for old age contributory pension and 46 per cent in the case of old age non-contributory pension.

In addition these pensioners are entitled to the free fuel allowance and the other schemes i.e. free travel, free electricity allowance, free TV licence and free telephone rental allowance subject, of course, to the eligibility conditions applicable to each scheme. The level of payments to the elderly was maintained in line with inflation in this year's budget.

The setting of differential rents by local authorities is a matter for each individual local authority and I would have no function in the matter. I am aware that Dublin Corporation is limiting its rent increase from 1996 to ensure that not more than 15 per cent of any social welfare increase will be included. I propose to take the issue up with my colleague, the Minister for the Environment, to clarify that the current arrangements are working satisfactorily in all local authority areas.

The compilation of the Consumer Price Index takes account of changes in housing costs and so linking social welfare rates to this index does maintain the real value of these payments.