Dáil debates

Tuesday, 7 November 2017

5:55 pm

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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57. To ask the Minister for Employment Affairs and Social Protection her plans to bring forward measures to address the anomaly whereby persons here dependent on a British state pension are disqualified from receiving the household benefits package, fuel allowance and living alone allowance. [46526/17]

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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62. To ask the Minister for Employment Affairs and Social Protection her plans to review the position of returning emigrants who are in receipt of a British pension only and who are not entitled to the household benefits package, fuel allowance or living alone allowance. [46525/17]

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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The issue I raise relates to people who emigrated, perhaps during times of recession, and experience difficulties on their return owing to the difference between the rates of pension paid in Britain and Ireland. I refer specifically to the position on what I will describe as ancillary payments, including the household benefits package, fuel allowance and living alone allowance. These payments provide important supports for persons who are solely dependent on a pension from the United Kingdom and do not have an occupational pension.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I propose to take Questions Nos. 57 and 62 together.

It is important to note that people in receipt of a British state pension are eligible to receive both the household benefits package and fuel allowance on the same basis as Irish State pension recipients. It appears from the Deputy's questions that he believes that is not the case. Persons in receipt of a British state pension definitely are eligible for these benefits as there is no difference in the treatment of Irish and British state pensions.

For the household benefits package, pensioners aged 70 years or over who are legally resident in Ireland are entitled to avail of the scheme without being in receipt of any state pension payment, British or otherwise. They receive the package because they have reached the magic age of 70 years. While the package is not means-tested, because it a household benefit, only one person per household is eligible.

For pensioners aged between 66 and 70 years, the same household conditions apply and the recipient must be in receipt of an equivalent social security pension from a country covered by European Union regulations or with which Ireland has a bilateral social security agreement. In addition, the household benefits package is means-tested for persons aged between 66 and 70 years. This may be the reason for the apparent anomaly referred to by the Deputy. In that regard, a person in receipt of a British social security pension is eligible for the scheme once he or she has satisfied the household conditions and means test.

The fuel allowance scheme is open to persons in receipt of a British state pension. Like all other recipients of the fuel allowance, the claimant must satisfy a means test, as well as all other qualifying conditions.

Persons in receipt of the British state pension are not entitled to receive the living alone increase. The living alone allowance is paid as an increase in the weekly rate of payment to pensioners and people with disabilities in receipt of qualifying payments who live alone. Clearly, persons in receipt of a British state pension do not receive an Irish State pension. There are no circumstances where the living alone increase is paid to persons not in receipt of a qualifying payment from the Department. This applies equally to individuals in receipt of an occupational or private pension but not a State pension.

If my reply does not clarify the position for the Deputy, perhaps he might contact the individuals who raised this matter with him to ascertain whether the issue arose as a result of a means test. This could explain his concern in that regard. If he is aware of persons in receipt of a British state pension who have been refused the household benefits package, I ask him to provide me with the details of the relevant cases and I will ensure the persons receive their entitlements.

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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I thank the Minister for providing clarity on an issue about which there are questions. According to the eligibility criteria, persons may qualify for ancillary benefits and the Minister has clarified that this means that persons in receipt of British state pensions will qualify on the same basis as persons in receipt of an Irish State pension. She has also pointed out that people aged over 70 years are not means-tested. In its alternative budget submissions Sinn Féin has sought to have the living alone allowance increased and it was increased by a small amount last year. At €9 per week, the payment is not a large sum, but it is important on a Monday or a Tuesday when money may be running out. I ask the Minister to revisit the decision not to pay the allowance to persons in receipt of British state pensions. I am referring to people who worked hard in construction, the health sector and so forth and paid hundreds of thousands of pounds in taxation. Their pensions from the British state flow into the economy here, although it works both ways.

I wish to raise another issue. Will I have another opportunity to contribute?

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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Yes.

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I have not yet introduced the Social Welfare Bill and while nothing is final, the measure the Deputy seeks is not included in the Bill, nor was it provided for in the budget. I do not know how many people are affected and would like to see the relevant figures. I agree with the Deputy, however, regarding the valuable contribution made by emigrants to Britain who built roads, tramways and railways before returning to Ireland on their retirement. I cannot do anything about this issue at present, but I will see what I can do when I have the figures.

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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I would welcome a decision to keep the matter under review. In addition to the people in question working hard, money is flowing into the economy on the back of taxes they paid over a long period. The Minister will be aware that, depending on the value of sterling, the differential between the Irish and British state pensions fluctuates. Questions sometimes arise about how the gap in value between the two pensions should be bridged. Depending on the contributions a person made in Britain, his or her pension from the British state may amount to £130 or £140. Currency fluctuations mean that the value of the pension expressed in euro will change. Thankfully, the Irish State pension is higher than the British state pension, which means that bridging the gap in value is an issue. Do people have a statutory entitlement in that regard?

In the context of Brexit, I read the criteria regarding the bilateral social security agreement with other member states. Is the Department discussing this issue with its counterpart in Britain in the context of Brexit?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Everyone has access to the non-contributory pension. If there is a difference between the value of the pension a person is receiving from the United Kingdom and the value of the non-contributory pension, he or she may apply for a payment to cover the difference.

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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Should he or she apply for a supplementary welfare allowance?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Anyone who does not have sufficient means can apply for a non-contributory pension and he or she will be eligible to receive a weekly non-contributory pension payment. If a pension from the British state does not reach the same value as the non-contributory State pension, the recipient can apply for a non-contributory State pension and while he or she will clearly not receive the full rate of payment, the payment may amount to the difference between the full rate and the value of the pension from the British state.

While I do not know what the position is on changes in value arising from currency fluctuations, I suspect that people would not be recompensed for such fluctuations as it would also mean recouping money when currency fluctuations benefited the recipient. The Department would have its hand slapped if it sought to do so. However, if the Deputy knows of persons who are in the position he and I described, they should be able to apply for an additional payment.

To respond on the other issue raised by the Deputy, we are not in a position to hold official negotiations because Ireland is part of the group of 27 member states negotiating Brexit. However, I had a number of meetings and conversations with my British counterparts. There is agreement and respect for Irish people living in the United Kingdom and British people living here. The reciprocal arrangements agreed long before Ireland or Britain joined the European Union are important to both nations and both countries wish to ensure they are enshrined in whatever is the outcome of the negotiations. We have not had official conversations.

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
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I thank the Minister for her reply. I am flagging the Brexit issue because it is one of many problems and challenges we will face across every Department and aspect of commerce, business and public administration. People are concerned about this issue and some are asking what will happen to those who depend on a British state pension.

With regard to the fluctuation in the value of the British state pension, I understand from the Minister's statement that the recipient of a British state pension payment equating to €150 may apply for a non-contributory pension payment of €80 to bridge the gap between the value of the Irish and British state pensions. Is that the case or must he or she apply for a supplementary welfare payment of €80 per week?

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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I will check the position in that regard and revert to the Deputy. Given that people without means who apply for a non-contributory pension will be granted the pension, if a person is receiving a pension payment from the British state that is less than the value of the non-contributory pension, he or she should be able to apply for a payment to bridge the gap in value. This does not mean that he or she must apply for a supplementary welfare payment. If the payment from the British state is consistent, he or she should receive a consistent payment here. I will check the position as I wish to be 100% certain before reverting to the Deputy later today.