Seán Haughey (Dublin North Central, Fianna Fail)
Link to this: Individually | In context

Question 247: To ask the Minister for Social and Family Affairs if he will review the position of elderly, stay at home housewives with no pre-1953 insurance contributions and in some cases with no post-1953 contributions, with a view to awarding them a State pension in their own right; and if he will make a statement on the matter. [17074/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

Payments under the social welfare system are made on the basis of social insurance contributions or where the person satisfies a means test. Within that structure every effort is made to ensure that the greatest possible number of people can receive a payment.

A number of measures have been introduced in recent years which make it easier for people to qualify for pensions. These include extended social insurance coverage and an easing of the qualifying conditions for old age contributory and retirement pensions. These measures are of particular benefit to women who may have less than complete social insurance records due to working in the home.

In 1997, the yearly average number of contributions required for pension purposes was reduced from 20 to ten and in 2000 a special half rate pension was introduced based on pre-53 insurance contributions. Pro rata pensions are also available to allow people with mixed rate insurance records to receive a payment.

The old age non-contributory pension is a social assistance scheme designed to provide financial support for all older people, whatever their circumstances, who do not qualify for one of the contributory pension schemes. In common with other social assistance schemes, it features a means test which is intended to ensure that available resources are targeted at those who are most in need. In this regard, budget 2005 provides for the disregard of the first €20,000 of savings or other assessable assets, such as shares or bonds, when means are being assessed. The allowance is doubled in the case of a married couple. The operation of the means test is kept under review and changes are made as required.

The Government is also committed to increasing the payment for qualified adults, age 66 or over, to the same level as the personal rate of the old age non-contributory pension and a number of special increases have been given over several budgets in pursuit of this target. This matter will continue to receive attention.

Seán Haughey (Dublin North Central, Fianna Fail)
Link to this: Individually | In context

Question 248: To ask the Minister for Social and Family Affairs if he will introduce a new system for eligibility for the contributory old age pension based on the cash value of pay-related contributions only to ensure consistency and equality between all claimants; and if he will make a statement on the matter. [17075/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

To qualify for an old age contributory pension, a person must have entered social insurance at least ten years before reaching pension age, have a minimum number of paid contributions on his-her record and have a yearly average of at least ten contributions paid or credited from 1953 when the unified system of social insurance came into effect or the date of entry into social insurance, if later. All contributions made, whether made through employment or as a voluntary contributor, are counted in assessing eligibility for pension.

The qualifying conditions for old age pension purposes were designed to ensure that those qualifying for payment have an adequate and sustained history of contributions to the social insurance fund over their working lives. However, it is accepted that this can give rise to varying results, with people with the same level of contributions receiving different rates of payment depending on when they commenced paying insurance.

It has been suggested that a system based on the total number of contributions paid would be more transparent, straightforward and consistent and this is something which is being examined. However, introducing a total contribution approach could give rise to practical considerations, not least of which would be deciding on the appropriate level of contributions that would be required for pension purposes. In this regard, a balance would need to be struck between the insurance records of those now qualifying for pension, which in many cases are quite poor, and the potential people now have to accumulate contributions as a result of the very comprehensive system of social insurance coverage which is in place since the mid-1990s.

I do not consider that basing payments on the cash value of contributions made would be an appropriate way of developing our system. The flat rate payments and the pay-related system of contributions means that the system redistributes resources to the lower paid and this is something which should be maintained.

Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 249: To ask the Minister for Social and Family Affairs if he will provide resources for a scheme (details supplied); the cost involved in such a scheme; and if he will make a statement on the matter. [17105/05]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 261: To ask the Minister for Social and Family Affairs his plans or proposals to improve, enhance or extend the free schemes with particular reference to qualification on age grounds; and if he will make a statement on the matter. [17433/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 249 and 261 together.

The free travel scheme is available to all people living in the State aged 66 years or over, to all carers in receipt of carer's allowance and to carers of people in receipt of constant attendance or prescribed relative's allowance. It is also available to certain people with disabilities and people who are in receipt of certain welfare type payments.

The scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by over 80 private transport operators. The majority of private contractors providing services under the scheme operate in rural areas. The underlying feature of the scheme is the use of spare capacity on these transport services.

I am always willing to consider applications from licensed private transport operators who may wish to participate in the free travel scheme. However, while my Department pays transport providers to operate the free travel scheme, it is not in a position to provide transport services where none exists. The issue of access to public transport in rural areas is being addressed at present through the rural transport initiative, which is being managed by Area Development Management, ADM Limited, on behalf of my colleague, the Minister for Transport. My Department contributed €500,000 to the initiative in 2004 and I secured €575,000 for the initiative for 2005. This will ensure that free travel pass holders continue to have full access to community based transport services.

With regard to the household benefits package of free schemes, which comprises the electricity-gas allowance, telephone allowance and television licence schemes, this package is generally available to people living permanently in the State, aged 66 years or over, who are in receipt of a social welfare type payment or who fulfil a means test. The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments. People aged over 70 years of age can qualify regardless of their income or household composition. Widows and widowers aged from 60 to 65 whose late spouses had been in receipt of the household benefit package retain that entitlement to ensure that households do not suffer a loss of entitlements following the death of a spouse.

I will continue to review the operation of the free schemes, including the free travel scheme, with a view to identifying the scope for further improvements where appropriate.

Paul McGrath (Westmeath, Fine Gael)
Link to this: Individually | In context

Question 250: To ask the Minister for Social and Family Affairs if he will consider a major review of the national fuel scheme and an extension of the scheme to a year round payment (details supplied). [17144/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The aim of the national fuel scheme is to assist householders who are in receipt of long-term payments from my Department or from the Health Service Executive towards their extra heating needs during the winter season. A fuel allowance of €9 per week —€12.90 in designated urban smokeless fuel zones — is paid to eligible households for a 29 week period from end of September to mid-April each year.

The fuel allowance scheme was reviewed comprehensively in 1998 as part of my Department's ongoing programme of expenditure reviews. That review broadly affirmed the validity of the existing scheme format and duration. A further formal review of this scheme is not on the current schedule of expenditure reviews by my Department.

Significant increases in recent years in primary social welfare payment rates have improved the income position generally for people dependent on the social welfare system. These rates are payable throughout the year and are intended to cover basic living costs, including cooking and heating, supplemented where applicable by the fuel allowance during the winter heating season. In addition, many households also qualify for electricity or gas allowances throughout the year under the social welfare household benefits scheme.

There have been further improvements in the fuel allowance scheme since it was reviewed in 1998, including the extension of the scheme duration from 26 to 29 weeks and increases in the income limits for eligibility. While I will continue to keep the scheme in mind in the context of the budget, I have no plans at present to extend fuel allowances to a year-round payment. This change would have very significant ongoing cost implications — of the order of €68 million per annum — and could only be considered in the light of other policy priorities within the budget resources available.