Dáil Éireann Debate, Thursday - 28 October 2004
254 Mr. Crawford asked the Minister for Social and Family Affairs the number of persons that are now depending on non-contributory old age pensions; his views on whether many of these, as self-employed persons, were not eligible to make any PRSI contributions until 1988; if he will consider removing the strict means test that is imposed on these persons and provide them with a full pension; and if he will make a statement on the matter. [26508/04]
Amharc ar fhreagraAt the end of September 2004, there were 85,381 people receiving an old age non-contributory pension which represents a decline of over 20% in the last ten years. Figures in relation to the previous employment status of those receiving old age non-contributory pension are not available.
This decline in the importance of the old age non-contributory pension reflects improved social insurance coverage and increased labour force participation, particularly for women. Successive changes to the social insurance system throughout the period 1974 to 1995 extended coverage to new groups of workers and this extended coverage is resulting in additional numbers now qualifying for contributory payments.
The Government is committed to extending contributory based pensions to as many people as possible through easing the qualifying conditions and catering for special groups who marginally fail to qualify for a pension. However, the basic principle underlying entitlement to social welfare contributory schemes, which requires a certain level and type of social insurance, remains an important feature.
Self-employed people who were over 56 years in 1988 when compulsory social insurance was introduced for the self-employed were one of the groups for whom a special pension was introduced. In April 1999 a flat-rate pension of 50% of the standard maximum rate with equivalent increases for adult and child dependants, was introduced based of the payment of 260 contributions. There are currently 16,116 people in receipt of the self-employed pension.
The old age non-contributory pension is a social assistance payment which is designed to provide financial support for older people who do not qualify for one of the contributory pension schemes. In common with other social assistance schemes it is payable subject to a means test which is intended to ensure that available resources are targeted at those who are most in need. There are no plans to remove the means test for this pension.
