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Dáil Éireann díospóireacht -
Tuesday, 27 Feb 2001

Vol. 531 No. 3

Written Answers. - Social Welfare Benefits.

Ivor Callely

Ceist:

48 Mr. Callely asked the Minister for Social, Community and Family Affairs the additional benefits which he has introduced for social welfare recipients; the benefits especially for recipients over 65 years of age; the other issues which are under consideration; and if he will make a statement on the matter. [5205/01]

The Government is committed to combating social exclusion, ending marginalisation and creating a fairer society. Last December's budget represented a further step towards achieving these goals. The most vulnerable in society, that is, the young, the elderly and those dependent on social welfare, will all benefit greatly from the improvements announced. At £850 million, the social welfare budget allocation is the biggest ever and more than double last year's welfare package. This allocation will, to an unprecedented extent, direct the resources of the State to the needs of our disadvantaged citizens and communities.

In regard to those who are old age pensioners, the Deputy will be aware of the commitment in the Action Programme for the Millennium to increase the old age pension rate to £100 by 2002. We are well on the way to achieving this target and in some cases have exceeded it with very significant increases granted over the last four budgets. The improvements announced in the 2001 budget will see the old age contributory pension increase to £106 per week, the old age non-contributory pension increase to £95.50 per week and the Widow/er's contributory pension for someone over 66 years of age increase to £102 per week. Overall increases since 1997 amount to between £18 and £28 per week, or 36% to 43%.

As also announced in the budget, I intend to increase the payment for qualified adults, aged 66 or over, to the same level as the personal rate of the old age non-contributory pension. This will be done over a number of budgets. The increase of £15 per week announced is the first step in this process. These increases are in addition to a series of other measures introduced in recent years which are designed to enable more people to qualify for pensions. These include the provision in 1999 of a special half rate pension for self employed contributors who were already over 56 years of age in 1988 when compulsory social insurance was introduced for this group, and the payment of another special half rate pension introduced in 2000 based on pre-53 insurance contributors.

New arrangements for the assessment of capital for non-contributory pensions were also introduced in 2000. However, I recognise that more can be done in this area and in August 2000 I launched the report on phase 1 of the review of the qualifying conditions for the old age contributory and retirement pensions which identified the key issues in relation to qualification conditions. Phase 2 of the review, which has just commenced, is examining specific proposals and costs in relation to pensions for homemakers and also the issues involved in moving from a yearly average to a total contributions approach. I expect to receive the working group's report later this year. Significant improvements have also been made in the area of the free schemes. In the budget the free schemes were extended to all people over 70 years of age regardless of their income or household composition from May this year. Free electricity allowance and free TV licence schemes were extended to qualified carers, with effect from October 2000 and payments under the free fuel scheme have been increased from 26 weeks to 29 weeks. The Government recognises that pensioners built this country and the measures I have outlined show our commitment to ensuring that pensioners have an adequate income so that they can enjoy a comfortable retirement.
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