Anne Rabbitte (Fianna Fail)
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I welcome the Minister of State, Deputy McConalogue, to the House.

Maria Byrne (Fine Gael)
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I thank the Minister of State for taking this Commencement matter on behalf of the Minister for Social Protection. I am grateful for the Minister's note to me to say he could not be here. I thank the Minister of State for taking his place.

There is an anomaly in the eligibility criteria for the living alone allowance. Retired teachers do not receive their pension from the Department of Social Protection. They have the same cost-of-living expenses we all face but they do not qualify for the living alone allowance because their pension is paid by the Department of education. That should be reviewed. Retired teachers still have their pension paid under the old Department of education contract. The fact they are not in receipt of a qualifying pension from the Department of Social Protection means they do not qualify for the allowance.

Many retired teachers live alone, with some being widows and others never having married. They gave the same service to the State as anybody else but the fact they do not have a qualifying pension from the Department of Social Protection makes them ineligible for the living alone allowance. I would like this to be reviewed.

Charlie McConalogue (Donegal, Fianna Fail)
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I thank the Senator for raising this matter, which I am happy to take on behalf of the Minister for Social Protection, Deputy Calleary, who apologises for being unable to be here this morning to take it.

The living alone increase is a supplementary payment of €22 per week to those who are aged over 66, living alone and in receipt of a contributory or non-contributory State pension or a contributory bereaved partner's pension. It is also available to those aged over 66 who live alone and are in receipt of a bereaved partner's pension, an incapacity supplement under the occupational injuries benefit scheme or deserted wife's benefit. It is also paid to people aged under 66 who live alone and are in receipt of a disability allowance, invalidity pension, incapacity supplement or blind pension. The living alone increase is not a stand-alone payment. It is only available to those in receipt of one of the specified payments.

Prior to 6 April 1995, civil and public servants, including teachers, did not have access to the full range of social insurance benefits as their terms of employment protected them against the main contingencies of illness and old age, and the risk of unemployment was not considered a factor due to the nature of their employment. Consequently, such contributors pay less in social insurance contributions in return for fewer social insurance benefits. For example, class D contributors, which includes teachers who started work before 5 April 1995, pay a contribution at a rate of 1.1% on their weekly earnings up to €1,143 and 4.2% on weekly earnings over that amount. Their employers pay a contribution of 2.55% on all employee earnings.

Class D contributors are currently entitled to a bereaved partners' contributory pension, the guardian's contributory payment, occupational injuries benefits, parent's benefit and carer's benefit. Class D contributors are not reckonable for the purpose of entitlement to a State contributory state pension. As such, a retired teacher who paid class D PRSI for their entire working life does not qualify for a State contributory pension. Therefore, a retired teacher in receipt of an occupational pension and no primary payment from the Department of Social Protection does not qualify for the living alone allowance.

Teachers recruited from 6 April 1995 play a class A social insurance contribution of 4.2% on their weekly earnings. Their employers pay a contribution of 9% where an employee's weekly earnings are €552 or less and 11.25% where their employees weekly earnings exceed that. Class A contributors have access to the full range of social insurance benefits, including the State contributory pension which is a qualifying payment for the living alone increase. The value of the State interview pension is integrated with the public service pension in the case of those recruited after 6 April 1995 and before 1 January 2013. Unlike those employed before April 1995, civil and public servants will receive their full pension entitlement under the public service pension.

There are no circumstances where the living alone increase can be paid to people who are not in receipt of a primary qualifying payment from the Department of Social protection or who do not meet the living alone eligibility criteria. Any change to the qualifying period for this payment will have to be considered in an overall policy and budgetary context. I thank the Senator.

Maria Byrne (Fine Gael)
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Teachers nowadays will qualify for the State pension, as we heard in the Minister of State's response, but there is a small anomaly. A small cohort are affected by the issue I have raised. They still face the same rising costs. They made lower PRSI contributions in the past. However, they are living alone. They still have heating and grocery bills and other bills coming in the door. There should be a review of the system. Perhaps exceptional circumstances could be examined for this small cohort. They have the same bills as everybody else, yet do not qualify for payments. I understand it is because they paid a lower rate of PRSI. However, given the cost of living and rising costs the policy should be reviewed. I would like the Minister of State to ask the Minister to look at reviewing it.

Charlie McConalogue (Donegal, Fianna Fail)
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I thank Senator Byrne. I will pass on her logic and argument for the living alone allowance for those in receipt of a teacher's pension. In my response from the Minister I laid out the background. The level of cover one receives in respect of social insurance contributions is very much tied to the contributions made over the years.

In the case of those teachers employed prior to 1995, the level of contribution they made was much lower than those employed after 1995 and that is why those employed after 1995 can qualify for the living alone allowance but the other cohort cannot. It is based on the contributions they made.

It is important to point out that further supports are available to all pensioners which do not require a person to be in receipt of a pension payment or qualifying payment. For example, the fuel allowance scheme is means tested and assists pensioners and other welfare dependent households in meeting the cost of heating during the winter season. It is available to a person aged 66 or over who is in receipt of a social welfare payment and is retired. Public teachers, for example, can qualify for that. All persons over the age of 70 can receive the household benefits package. The Senator's point concerns the living alone allowance. I will inform the Minister of the case she has made.