Bernard Durkan (Kildare North, Fine Gael)
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Question 218: To ask the Minister for Social and Family Affairs if he will increase old age pensions in line with price increases generally, especially those not reflected in the CPI; and if he will make a statement on the matter. [31260/05]

Séamus Brennan (Dublin South, Fianna Fail)
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In the programme for Government, the Government has made the needs of older people a priority with the inclusion of several commitments related specifically to older people. One of these is a commitment to increase the old age pension rate to €200 per week by 2007. Significant progress towards this objective has been made since the Government took office in 1997 with increases of up to €80.26 per week or 81% during this period. The consumer price increase over the same period is 30.7%. The real increase in pensions since 1997 is 38.5%. At present, the maximum rate of the old age contributory pension stands at €179.30.

Progress has also been made to increase the level of qualified adult allowance for pensioner spouses to the level of the old age non-contributory pension with a number of special increases granted in recent budgets. Also, new pension claimants can now opt to have the qualified adult allowance, QAA, paid directly to their spouse or partner. The administrative and legislative implications of enhancing these provisions are being examined to ensure that more qualified adults can receive a personal payment.

Budget 2005 provided for an increase of €9.30 or 7.2% in the QAA rates of old age contributory pension and retirement pension, ensuring that the levels of these payments were maintained relative to the personal rates of payment. QAA rates for those over 66 years of age now stand at between 66% and 77% of maximum personal rates, up from about 60% and 67% in 2000. Invalidity pension QAA rates for over 66's have been brought up to the level of other contributory pensioner rates.

In addition, a significant improvement for old age non-contributory pensioners was made with the increase in the capital disregard from the first €12,697.38 to the first €20,000 of savings or other assessable assets, such as shares or bonds, when means are being assessed.

Further improvements in pension rates will be considered in the context of the forthcoming budget and in the context of broader social policy reforms.