Dáil Éireann díospóireacht -
Wednesday, 17 Jun 1998

Vol. 492 No. 5

Other Questions. - Social Welfare Benefits.

Breeda Moynihan-Cronin

Ceist:

39 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs the reason his Department, prior to the implementation of budgetary increases, indicated on pension books that recipients would receive an increase of £5 per week and the adult dependant £1.50 per week when only pensioners in receipt of the maximum rate were granted this increase when new books were issued and those in receipt of reduced pensions only received a percentage increase; and if he will make a statement on the matter. [14458/98]

Mr. D. Ahern

I assume the Deputy is referring to the 1998 budgetary increases and, in particular, those provided for recipients of old age contributory and retirement mixed insurance and EU pro rata pensions.

This year's budget provided for a special catch-up increase of £5 per week in the maximum personal rates of payments for pensioners aged 65 and over, with pro rata increases for people on reduced rate contributory pensions.

In this instance, the rerated pension books which issued to a number of people — 240 — in receipt of pro rata old age contributory and retirement pensions erroneously indicated that their budgetary increase would be the percentage payable to those normally in receipt of the maximum personal rate of payment. When my Department discovered this inaccuracy, a mailshot was immediately issued to all those concerned, informing them of their correct rate of entitlement and the calculation basis for same.

A priority of this budget was to advance the position of our older people. The special increases provided for older people forms part of the implementation process of this Government's commitment, in our Action Programme for the Millennium, to increase contributory old age pensions to £100 over a five-year period.

In addition, and in recognition of the fact that the 1998 budget was announced at a date earlier than in previous years, the increases in social welfare payment rates have come into effect from the first week in June. This means that the improved and higher payment rates will be paid for 31 weeks this year as opposed to 29 weeks in previous years.

Mrs. B. Moynihan-Cronin

I thank the Minister for his reply. I ask him to reply personally to the 240 people who were notified that they would receive an increase of £5 a week and did not receive it. Will the Minister agree that many pensioners were misled by the Minister's statement that pensioners would get an increase of £5 when, effectively, for a couple dependent on the maximum level of old age pension, the net gain was £3.25? Will the Minister write personally to the 240 people in question.

Mr. D. Ahern

A mailshot issued to the 240 people who received erroneous information. In the budget statement, and in my own budget speech, the increase for old age pensioners was clearly stated — 270,000 pensioners aged 66 or over were to have their pensions increased by £5 a week with some 54,000 on the reduced rate of contributory pension receiving proportionate increases. About 8,900 people got increases of between £3 and £5. A mix-up occurred in relation to the 240 people in question. It was not possible to automatically calculate the correct budgetary increase for them because of the type of contributory pension they had.

Written Answers follow Adjournment Debate