Bernard J. Durkan
Ceist:283 Mr. Durkan asked the Minister for Social and Family Affairs if she will give consideration to substantially increasing the old age pension; and if she will make a statement on the matter. [24574/03]
Written Answers. - Pension Provisions.
The Government will continue its policy of providing significant increases in pensions and in this regard is committed, through the programme for Government and Sustaining Progress, to a new target rate for the basic pension of €200 per week, to be achieved by 2007. The improvements announced in the 2003 budget saw the old age contributory pension increase to €157.30 per week and the old age non-contributory pension increase to €144 per week. In addition, the Government is also committed as part of Sustaining Progress to increasing pensions over a five to ten-year period to 34% of average industrial earnings.
Also in the programme for Government and in Sustaining Progress, the Government is committed to increasing 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 process had already commenced in budget 2000 and a number of special increases have been granted since then. The rate of the qualified allowance on the contributory pension now stands at €121.50 per week, which is about 84% of the maximum rate of the non-contributory pension. From October 2002, new applicants for pension can arrange for the payment of the allowance direct to their spouses or partners. Improvements for pensioners remain one of the Government's main priorities. Social welfare provision for this group will be kept under review and further improvements will be considered where appropriate.
Bernard J. Durkan
Ceist:284 Mr. Durkan asked the Minister for Social and Family Affairs the total number of persons in receipt of contributory old age pension; and if she will make a statement on the matter. [24575/03]
Bernard J. Durkan
Ceist:285 Mr. Durkan asked the Minister for Social and Family Affairs the total number of persons in receipt of non-contributory old age pension; and if she will make a statement on the matter. [24576/03]
I propose to take Questions Nos. 284 and 285 together.
At the end of September 2003, 111,650 people were receiving an old age contributory pension from my Department. A further 85,859 were receiving a retirement pension and 86,996 were receiving an old age non-contributory pension. The balance between means tested and social insurance-based old age pension has shifted significantly in recent years with the latter now accounting for some 69% of pensions paid. This can be attributed to the progressive extension of social insurance, which has resulted in an increasing number of those reaching the age of 66 qualifying for a contributory-based pension. This is in keeping with Government policy aimed at ensuring that the majority of workers, including the self-employed, are covered for non-means tested pensions under social insurance.
In addition, improvements in the qualifying conditions of old age contributory pension, such as the recent pre-53 pension, have broadened the scope of entitlement of those who would otherwise not have qualified for a contributory pension or non-contributory pension by reason of not satisfying the means test.