Billy Timmins
Ceist:222 Mr. Timmins asked the Minister for Social, Community and Family Affairs the estimated cost to the Exchequer of a £10 weekly increase for old age pensioners. [27028/98]
Written Answers. - Pension Provisions.
Billy Timmins
Ceist:223 Mr. Timmins asked the Minister for Social, Community and Family Affairs the estimated cost to the Exchequer of a £10 weekly increase in the widow or widowers pension. [27029/98]
I propose to take Questions Nos. 222 and 223 together.
The estimated cost of a £10 per week increase in the maximum personal weekly rate of old age pensions, other payments to people over 66 and widow's-widower's pensions is shown in the attached table.
It should be noted that contributory based payments are financed through the social insurance fund, while social assistance payments are financed directly by the Exchequer. The social insurance fund is made up of PRSI contributions made by employers, employees and the self-employed; in years in which these contributions are insufficient to pay for benefit entitlements the shortfall is made up by the Exchequer. The cost to the Exchequer of increases in contributory payments in any year therefore depends on whether the fund is in surplus or deficit. The fund is currently in surplus.
The recent budget made provision for increases in weekly rates of social welfare payments costing £201.67 million in a full year. These increases include a weekly increase of at least £3 per week in the rate of payments made to persons aged under 66 years of age and an increase of £6 to people over 66.
In so far as pensioners are concerned, the effect of these increases is that the old age contributory pension will now stand at £89 per week, a 14 per cent increase on the rate which applied in 1997 when this Government came into office. A couple in receipt of the maximum rate of old age contributory pension will be £9 per week better off as a result of the increases provided for in the budget.
Cost £ Million
|
Social Insurance Fund |
Exchequer |
Total |
|
|
Old Age (Contributory and Non Contributory) Retirement Pensions. |
74.3 |
49.4 |
123.7 |
|
All Widow/er's (Contributory and Non Contributory) Pensions. |
50.8 |
8.1 |
58.9 |
|
Widow/er's (Contributory and Non Contributory) Pensions aged 66 and over. |
33.3 |
7.5 |
40.8 |
|
All other payments to persons aged 66 and over. |
1.2 |
1.0 |
2.2 |