Jimmy Deenihan
Ceist:37 Mr. Deenihan asked the Minister for Social, Community and Family Affairs if he will review the level of payment of widow's contributory and non-contributory pensions; and if he will make a statement on the matter. [19940/01]
Vol. 540 No. 2
37 Mr. Deenihan asked the Minister for Social, Community and Family Affairs if he will review the level of payment of widow's contributory and non-contributory pensions; and if he will make a statement on the matter. [19940/01]
The widow and widower's pension schemes are designed to recognise the particular difficulties that arise following the death of a spouse.
Since April of this year the maximum rate of widow and widower's contributory pension has been £89.10 per week for those aged under 66 years of age. The corresponding rate of widow and widower's non-contributory pension is £85.50 per week.
In line with the Government's commitment to pensioners and as announced in budget 2001, I decided to increase the widow and widowers's contributory pension for recipients aged 66 or over to the full old age, contributory, pension rate over two budgets. The special increase of £12.90 per week which came into effect in April is the first step in this process. The maximum rate of widow(er)'s contributory pension is now £102 per week for those aged over 66. The corresponding weekly rate of widow and widower's non contributory pension is £95.50.
The increases in the rates of child benefit which came into effect this month are of benefit to widows and widowers with children. Monthly child benefit payments are now £67.50 per month for each of the first and second children and £86 per month for the third and subsequent children.
38 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs if people on means-tested social welfare assistance, such as unemployment assistance, will be liable to payment reductions on the basis that they have saved some of their payment in the new special savings scheme; if he intends disregarding small savings by such people; his views on whether the scheme enables low income earners to save; and if he will make a statement on the matter. [20094/01]
The new Government special savings incentive scheme which came into operation on 1 May 2001 allows savers to save between £10 and £200 a month amounting to between £200 and £12,000 over a five year period. Under the scheme the Government guarantees the saver £1 for every £4 saved. Savers must be over 18, resident in this country and have a PPS number.
All social assistance payments are subject to a means test. The purpose of the means test is to ensure that limited resources are directed towards those with little, if any, additional income. For the purposes of assessing means, any savings which a person might have are treated as capital and are assessed along with the value of property and any cash income.
Under the current arrangements for assessing capital for all social assistance schemes except supplementary welfare allowance: the first £10,000 is disregarded; capital between £10,000 and £20,000 is assessed on the basis of £1 weekly means for each £1,000 of capital; capital between £20,000 and £30,000 is assessed on the basis of £2 weekly means for each £1,000 of capital; and capital above £30,000 is assessed on the basis of £4 weekly means for each £1,000 of capital.