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Dáil Éireann díospóireacht -
Wednesday, 15 Oct 1997

Vol. 481 No. 5

Written Answers - Pension Provisions

Brian O'Shea

Ceist:

14 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to substantially improve payments to those old age pensioners receiving payment from his Department; and if he will make a statement on the matter. [16419/97]

Thomas P. Broughan

Ceist:

19 Mr. Broughan asked the Minister for Social, Community and Family Affairs the plans, if any, he has in the December 1997 and subsequent budgets and in view of the commitment in An Action Programme for the Millennium to increase the social welfare old age pensions to £100 per week; if he intends to increase the widows contributory pension to that rate also; and if he will make a statement on the matter. [16497/97]

Thomas P. Broughan

Ceist:

29 Mr. Broughan asked the Minister for Social, Community and Family Affairs the plans, if any, he has in the December 1997 and subsequent budgets and in view of the commitment in An Action Programme for the Millennium to increase social welfare pensions to £100 per week; if he will increase the widows non-contributory pension to that rate also; and if he will make a statement on the matter. [16498/97]

Róisín Shortall

Ceist:

35 Ms Shortall asked the Minister for Social, Community and Family Affairs the plans, if any, he has in December 1997 and subsequent budgets to increase the old age contributory pension to £100 per week in line with the commitment in An Action Programme for the Millennium; the total cost involved for each year; and if he will make a statement on the matter. [16495/97]

Eamon Gilmore

Ceist:

39 Mr. Gilmore asked the Minister for Social, Community and Family Affairs when it is intended to increase the old age pension to £100 per week; if it is intended that this figure will apply to all old age pensioners; the annual percentage and monetary increase needed to achieve this target over five years; and if he will make a statement on the matter. [16436/97]

Róisín Shortall

Ceist:

44 Ms Shortall asked the Minister for Social, Community and Family Affairs the plans, if any, he has in the December 1997 and subsequent budgets to increase the old age non-contributory pension to £100 per week in line with the commitment in An Action Programme for the Millennium; the total cost involved for each year; and if he will make a statement on the matter. [16496/97]

I propose to take Questions Nos. 14, 19, 29, 35, 39 and 44 together.

The Government acknowledges the special place of the older people in the community and the contribution they have made towards our current favourable economic position. In recognition, the Action Programme for the Millennium proposes a significant package of improvements to repay their efforts.

Many people still rely totally on the social welfare pensions for their income in retirement and this was one of the reasons why a key priority of the Government action programme is substantial social welfare increases, including increases in the old age contributory pension to £100 per week over our five year term of office. This commitment is being examined in the context of formulating proposals for the 1998 budget. The question of improving payment rates for other categories of social welfare pensioners for example, old age non-contributory pensioners or widow's and widower's (contributory and non-contributory) pensioners, is also being examined in a budgetary context.

The position of pensions, both social welfare and occupational, and pensioners generally is also being considered in the context of the national pensions policy initiative and the Pensions Board will be submitting their report to me on this initiative before the end of the year.

An annual increase of approximately 5 per cent would be required to progressively increase the old age contributory and retirement pension from its present rate of £78 to £100 over a five year period. Alternatively, the £100 rate could be achieved by providing flat-rate annual increases of £4.40 over the five years at an additional full year cost of £37.36 million in each year. The cumulative full year cost over the five year period would be £186.78 million per annum.

In the case of the old age (non-contributory) pension, an annual increase of 5 per cent would bring that pension from its present rate of £67.50 to approximately £86.10 over five years, at a cumulative full year cost of £97.65 million. An annual increase of approximately 8.3 per cent would be required to progressively increase that pension from its present rate of £67.50 to £100 over a five year period. Alternatively, a £100 rate would require a flat-rate annual increase of £6.50 over five years, at an additional full year cost of £34.13 million in each year. The cumulative full year cost over the five year period would be £170.63 million per annum.
In the case of the widow's and widower's (contributory) pension, an annual increase of 5 per cent would bring that pension from its present rate of £71.10 to approximately £90.70 over five years, at a cumulative full year cost in the region of £100.94 million. If such an increase were to be confined to widows and widowers aged 66 and over, the cumulative full year cost over five years would be in the region of £65.46 million. An annual increase of approximately 7 per cent would be required to progressively increase the widow's and widower's pension (contributory) pension from its present rate of £71.10 to £100 over a five-year period. Alternatively, a £100 rate would require a flat-rate increase of £5.80 each year, at a full year cost of £29.87 million in each year and a cumulative £149.35 million over five years. If such an increase were to be confined to widows and widowers aged 66 and over the respective costs would be £19.37 million in a full year and £96.86 million cumulatively over five years.
Finally, in the case of the widow's and widower's (non-contributory) pension, an annual increase of 5 per cent would bring that pension from its present rate of £67.50 to approximately £86.10 over 5 years, at a cumulative full year cost in the region of £18.6 million. If such an increase were to be confined to widows and widowers aged 66 and over the cumulative full year cost over five years would be in the region of £14.69 million. An annual increase of approximately 8.3 per cent would be required to progressively increase that pension from its present rate of £67.50 to £100 over a five year period. Alternatively, a £100 rate would require a flat-rate increase of £6.50 over five years, at a full year cost of £6.5 million in each year and a cumulative £32.5 million over a five year period. If such an increase were to be confined to widows and widowers aged 66 and over, the respective costs would be £5.14 million in a full year and £25.68 million cumulatively over five years.
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