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State Pension (Contributory) Data

Dáil Éireann Debate, Wednesday - 2 May 2018

Wednesday, 2 May 2018

Ceisteanna (172, 173, 174, 175, 176, 179, 180)

John Brady

Ceist:

172. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated cost of extending a pension payment of €243.30 to all persons resident here who are 66 years of age and over and are not in receipt of a State pension payment either in their own right or as a qualified adult based on the latest CSO population projections. [19195/18]

Amharc ar fhreagra

John Brady

Ceist:

173. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated cost of extending a pension payment of €243.30 to all persons resident here who are 65 years of age and over and are not currently in receipt of a State pension payment either in their own right or as a qualified adult based on the latest CSO population projections. [19196/18]

Amharc ar fhreagra

John Brady

Ceist:

174. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing the State pension (contributory) rate to 35% of the average industrial wage. [19197/18]

Amharc ar fhreagra

John Brady

Ceist:

175. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing the State pension (contributory) rate to 40% of the average industrial wage. [19198/18]

Amharc ar fhreagra

John Brady

Ceist:

176. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated additional cost of a payment of €216.38 to all persons in receipt of the State pension who are receiving a State pension less than that amount including qualified adults. [19199/18]

Amharc ar fhreagra

John Brady

Ceist:

179. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated additional cost of providing a payment of €216.38 to all persons in receipt of the State pension who are receiving a State pension less than that amount including qualified adults. [19202/18]

Amharc ar fhreagra

John Brady

Ceist:

180. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the estimated additional cost of providing a payment of €216.38 to all persons in receipt of the State pension that are receiving a non-contributory State pension that is below the top rate of €232 including qualified adults. [19203/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 172 to 176, inclusive, 179 and 180 together.

In 2018, it is estimated that this Department will spend almost €7.6 billion on pension payments. The cost includes payments to just over 650,000 pensioners and qualified adults who are aged 66 and over as well as pensions paid to those who are under 66 years of age (such as widows and qualified adults under the age of 66). The cost of increasing payments for all existing pensioners and qualified adults aged 66 and over to €243.30 per week would be €540 million in a full year.

According to the CSO’s Population and Labour Force Projections for 2018, and taking account of various assumptions, the number of people aged 66 and over resident in Ireland is estimated to range between 618,816 and 620,711. The cost of providing a pension payment of €243.30 for all residents aged 66 and over would then range between €7.83 billion and €7.85 billion. It should be noted that this does not include the cost of increasing pension payments to pensioners living abroad who are entitled to a contributory pension.

According to the CSO’s Population and Labour Force Projections for 2018, and taking account of various assumptions, the number of people aged 65 and over resident in Ireland is estimated to range between 664,634 and 666,680. The cost of providing a pension payment of €243.30 for all people aged 65 and over would then range between €8.40 billion and €8.43 billion. Again, it should be noted that this does not include the cost of increasing pension payments to pensioners living abroad who are entitled to a contributory pension.

The average weekly earnings for 2017 (based on an average for each of the quarters of 2017) are €724.05 per week. The cost of increasing the State Pension (Contributory) to 35% of €724.05 per week is estimated to be €206.05 million in 2019. The additional cost of increasing the Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension by the same amount is estimated to be €43.7 million in 2019.

The cost of increasing the State Pension (Contributory) to 40% of €724.05 per week is estimated to be €943.3 million in 2019. The additional cost of increasing the Widow’s, Widower’s or Surviving Civil Partner’s Contributory Pension by the same amount is estimated to be €200.1 million in 2019.

The additional cost of providing a payment of €216.38 to each recipient of a State pension payment, including those in receipt of a reduced rate of payment as well as those in receipt of a qualified adult payment, is estimated to be €230.7 million in 2019. This costing includes increases in the reduced rates of State Pension Contributory and Widows, Widower’s or Surviving Civil Partner’s Contributory Pension.

It is not possible to calculate the cost of providing a payment of €216.38 to all persons in receipt of reduced rates of State Pension Non-Contributory. However, the cost of increasing the rate payable to qualified adults of the payment is estimated to be €9.6 million in 2019.

The costs shown above are on a full year basis and are based on the estimated number of recipients in 2018. It should be noted that these costings are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients for 2019. It should also be noted that all of these costings include proportionate increases for qualified adults and for those on reduced rates of payment, where relevant.

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