The person concerned currently receives a reduced rate old age non-contributory pension of £65.50 per week, based on means of £13.50 primarily derived from share investments. He is also in receipt of a living alone allowance of £6 per week and a fuel allowance of £5 per week from mid-October to mid-April.
On 6 March 1998 the person concerned requested a review of his entitlement to pension on the grounds that his circumstances had changed. Following this review, he was assessed with weekly means of £223.89, derived mainly from shares and some other savings. As this calculated value exceeds the statutory limit of £70 per week for entitlement to pension, he is no longer entitled to an old age non-contributory pension. The capital value of this shares and other capital held and increased from £6,785.64 in November 1996 to £89,600.76 by April 1998. The method of assessment of means from capital is specified in the Social Welfare Acts. Under the assessment provisions, the first £2,000 of capital is disregarded, the next £20,000 is assessed at 7.5 per cent of the capital value and the balance is assessed at 15 per cent in order to determine the yearly value of savings and investments, and hence the weekly means.
As the person concerned is disputing the facts used as the basis of means assessment, the matter has been referred back to a local officer of my Department for clarification with him. On receipt of the local officer's report a decision will be made and the person concerned will be notified of the outcome without delay. However, even on the basis of the lower share amount claimed by the person concerned, his net weekly means are likely to remain over the statutory limit for pension entitlement.