I propose to take Questions Nos. 412 and 413 together.
In the last Budget, I announced a wide range of important measures for non-contributory pensioners. These included a significant increase in the means disregard from €7.60 per week to €20 per week. Consequent on the increase in the means disregard to €20 per week a single person, with no other means, can have up to €36,000 in capital and still qualify for a pension at the maximum rate. These figures are doubled in the case of a pensioner couple.
As part of the pension reforms, I also announced a specific additional disregard of €100 per week where the pensioner is in employment. This new disregard, relating to earnings from employment, is intended as an incentive to facilitate non-contributory pensioners who wish to continue working, or to re-enter the workforce.
The effect of this disregard is that the first €100 of weekly earnings from employment that a pensioner has will be disregarded from the means test. A similar disregard will apply to the pensioner's spouse or partner. The disregard will also apply to people under age 66 who are in receipt of a widow/er's non-contributory pension, deserted wife's allowance and prisoner's wife's allowance.
The rate of pension awarded is based on a means test and income above €100 of earnings is included for the assessment of means. Also included is the value of capital (such as savings and investment) and property (other than the pensioners own home.)
Once the weekly means of the pensioner have been established, the weekly income disregard of €20 is applied. Any income amount remaining after the disregards have been applied reduces the maximum pension payable, based on a scheduled table of income bands. Each increase in weekly means of amounts up to €2.50 has the effect of reducing the pension payable by €2.50 per week. In a case such as the example quoted, where a pensioner has earnings from employment of up to €100 per week and capital of €35,000 with no other means, a pension at the maximum rate is payable.