Vol. 501 No. 5
8 Mr. McGrath asked the Minister for Social, Community and Family Affairs the estimated number of people over 75 years who do not qualify for any pension or free scheme except free travel; and the plans, if any, he has to broaden the eligibility criteria for this age group. [6288/99]
According to the 1996 census, there were more than 174,500 people over 75 years of age when the census was compiled. In 1995-96 more than 152,000 people over 75 years of age were in receipt of a social welfare pension from my Department; therefore, coverage of this age cohort is estimated to be 87 per cent. The remaining 13 per cent would include qualified adults of social welfare recipients and those who do not qualify for a contributory pension or have not met the means test for a non-contributory pension.
The Government is committed to the social insurance system and on foot of the extension of this system over the past ten years, the role of contributory – PRSI related – pensions will increase in the future. It is not known, of those who are not receiving a payment from my Department, how many are in receipt of pensions from other sources, that is, occupational pensions or social security pensions from other countries.
In my budget speech, I announced that my Department will carry out a comprehensive review of the qualifying conditions for the old age contributory and retirement pensions. This review will pay particular attention to the operation of the yearly average qualifying condition, including the possibility of using contributions paid prior to 1953. The issues involved are complex and raise fundamental questions regarding the number of contributions, both paid and credited, of a person. Issues of equity and redistribution within the social insurance system also need to be addressed.
The free schemes, such as the free electricity and free telephone rental allowances and free television licence, are available to people, usually aged 66 or over, who are in receipt of a welfare type payment and who are either living alone or who otherwise satisfy this condition. In addition, widows-widowers between the ages of 60 and 65, whose late spouses had been in receipt of the free schemes, retain that entitlement. The free schemes are also available to low income pensioners who are not in receipt of a social welfare type pension and who satisfy a means test. The weekly means income limit fixed for this purpose is the maximum personal rate of old age contributory pension, which is currently £83 for a recipient aged 66 to 79 years and £88 for a recipient aged 80 years or over plus £30 plus any increases for dependants or living alone. In order to qualify for the free schemes, a person must be living alone or only with certain other people who satisfy this condition. This condition is not, however, applied in the case of persons aged over 75 years who are in receipt of a qualifying payment.
Regarding the estimated number of people over age 75 who are not in receipt of the various free schemes, 71,200 people do not receive the free electricity or gas allowances and the free television licence while 83,000 do not receive the free telephone rental allowance. The reasons for this include a person living in a household that already receives the free schemes – the allowances are per household and not per person; a person not in receipt of a qualifying payment or above the means threshold, and issues related to take up.
The free schemes were originally designed to benefit mainly older people in receipt of a social welfare type payment who were living alone and required additional assistance. However, over the years, additional categories of people have been included. A fundamental review of the free schemes has commenced in order to assess whether the objectives of these schemes are being achieved in the most efficient and effective manner. It is hoped this will be completed by mid-year.
I thank the Minister for his comprehensive response. It appears only a relatively small number of people aged over 75 years are not in receipt of any of the free schemes. These people survived the Civil War, the difficulties of poverty in the 1920s and 1930s and World War II. They are now in their twilight years and they are finding it difficult to make ends meet. They are not receiving any State aid and it would be a nice gesture to extend the free schemes to them. Two 90 year old people walked into my office on separate occasions recently. They are not in receipt of pensions from the Department and, therefore, they do not qualify for the free schemes. They felt at this stage of their lives that the State should acknowledge them in some way. Does the Minister agree this area should be considered? They are a deserving group and, as the Minister admitted, it only involves a small number of people. Can the Minister do something for them?
Regarding the number of people over the age of 75 who are not in the various free schemes other than the free travel scheme, a total of 71,200 do not receive the free electricity or gas allowances and the free television licence while 83,000 do not receive the free telephone rental allowance. It is a considerable number of people.
It must be acknowledged by all sides that no Government in recent times has concentrated more on the elderly than this Administration. It might have been easier to give everybody a set amount as was done previously. However, the Government made a conscious decision to put money in old people's pockets and we make no apologies for it. Taking into account changes in the medical card scheme for people over the age of 75, and changes whereby 15,000 old age pensioners over the age of 66 have been taken out of the tax net as a result of the last budget, one is pushing an open door with this Government on issues relating to old age pensioners. Ultimately, this is one of the reasons we instigated the review of the free schemes, and it is hoped that this free scheme review will be available mid-year. That will determine what changes, if any, we will make. Obviously the one the Deputy raised will be looked at in that context.
Written Answers follow Adjournment Debate.
