Joe Costello (Dublin Central, Labour)
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Question 113: To ask the Minister for Social and Family Affairs the extent to which living alone is factored into the setting of social welfare rates; the analysis undertaken by or on behalf of her Department which has determined the extra cost associated with living alone on social welfare relative to the costs for a couple; and if she will make a statement on the matter. [34876/08]

James Reilly (Dublin North, Fine Gael)
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Question 118: To ask the Minister for Social and Family Affairs her views on increasing the living alone allowance; and if she will make a statement on the matter. [34835/08]

Brian O'Shea (Waterford, Labour)
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Question 169: To ask the Minister for Social and Family Affairs the changes she will make to the rate of the living alone allowance. [34880/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 113, 118 and 169 together.

The living alone allowance or living alone increase as it is now known, is an additional payment of €7.70 per week to people who are in receipt of certain social welfare type payments and who live alone. The increase is intended as a contribution towards the additional costs people face when they live alone. The policy in regard to support for older people has been for many years to give priority to increasing the personal rates of pension in addition to enhancing the household benefits package and other supports rather than supplementing the living alone increase. The objective is to use resources to improve the position of all pensioners to the fullest extent possible.

The results of this policy can be seen in the most recent results from the EU Survey on Income and Living Conditions, SILC, which show that the position of older people improved significantly from 2005 to 2006 with the "at risk of poverty" rate falling from 20.1% to 13.6% and the consistent poverty rate falling from 3.7% to 2.1%. This latter result indicates that we have met the target set in the National Action Plan for Social Inclusion. Furthermore, the number of people aged 65 and over at risk of poverty was significantly lower than the figure of 17% for the general population. These figures do not take account of the significant increases in pensions in the 2007 and 2008 budgets so the position can be expected to improve further.

In Budget 2009, we have provided for increases of €7 per week in the personal rate of pensions. This is broadly in line with inflation and so will maintain the real value of pension payments and protect the very significant progress we have made in recent years in reducing the poverty risk for all older people. While I acknowledge the overall and positive impact of increasing the resources of all pensions, I am also conscious of the particular difficulties which older people face when living alone. I intend to keep this matter under review.

Róisín Shortall (Dublin North West, Labour)
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The Minister has studiously avoided answering my question. The Vincentian Partnership carried out worthwhile research into minimum essential budgets. In this regard, it added up the weekly expenses of people in different categories and measured this against their social welfare income. It found that the cost of living for a single pensioner is equal to approximately 73% of a couple's living expenses. Did the Minister read this research on which many agencies are basing their work? If so, does she accept it? Also, will she then accept that €7.70 per week is not enough to cope with the costs of living alone for pensioners?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Vincentian Partnership research, which I have read, was a valuable contribution in our consideration of the budget as was the forum which we held with all of the organisations involved. There has been no increase in the living alone allowance since 1996 because the emphasis has been on increasing basic rates of payment. With a pot of €515 million, the amount allocated to the social welfare package in Budget 2009, I had to prioritise and to ensure the basic rates increased for everybody. It was not possible this year to give the same increases as we gave last year. Were I to target even more specifically groups living alone I would have had to take money from other people and perhaps given some of them less than the anticipated rate of inflation and this would not have been fair either. In trying to prioritise, I had to ensure the basic rates were increased. This is the reason for increases such as the €7 per week increase for pensioners. To give to anybody else would have required me to take this increase from them.

Róisín Shortall (Dublin North West, Labour)
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The Minister is being disingenuous in what she is saying.

Brendan Howlin (Wexford, Labour)
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I will allow a brief supplementary question from Deputies Enright and Shortall.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Minister is doing a great deal of cherry-picking in that she is taking the line of reports which back up what she is saying and is stating other reports which do not agree with her are "interesting". The Minister needs to take on board what the Vincentian Partnership had to say. A person who moves from living in a two person household to a one person household is given an increase of €7.70. The Minister is correct that there has been no increase in this payment since 1996. It has not been increased as long as this Government has been in office.

What does the Minister mean when she says she will keep this matter under review? This to me appears pretty meaningless in a situation where everything but clothes and a little extra fuel must be paid for by one person rather than two.

Brendan Howlin (Wexford, Labour)
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I call Deputy Róisín Shortall for a brief supplementary.

Róisín Shortall (Dublin North West, Labour)
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The Minister is being extremely disingenuous in terms of how she is dealing with this question. I asked her if she accepts the findings of the Vincentian Partnership that the cost of living for a single pensioner is equal to 73% of the cost of living for a couple. Does the Minister accept this? If she does, what is her defence of the fact that the living alone allowance has not been increased for the past 12 years?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The defence is that a social welfare package of €515 million has been provided for under the current budget. In dividing this money, we had to ensure the basic payments this year were as generous as possible. To target this in any other way would have required me to take from other recipients.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Government had 11 other years during which it could have done something in this area.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Many people living alone also qualify for the fuel allowance which was increased by €2 per week and extended for two weeks.

Róisín Shortall (Dublin North West, Labour)
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The point is the relativity between a single pensioner and a couple.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Many people who are living alone also qualify for the fuel allowance and as such are benefiting from that.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Minister is missing the point.

Róisín Shortall (Dublin North West, Labour)
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The Minister is avoiding the question.