Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 75: To ask the Minister for Social and Family Affairs his plans to review the means test for farmers applying for the old age non-contributory pension; and if he will make a statement on the matter. [4506/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I understand that the Deputy is concerned in particular about the current arrangements applying in the case of old age pension where a landholder leases land or is otherwise in possession of land which is fallow or idle.

While there were no specific measures regarding the leasing of land in the recent budget, it contained a number of important measures which are designed to target resources at particular groups of older people, including the farmers in question. In considering these measures I was anxious to target resources at those who are at the greatest risk of poverty; to encourage saving, and to simplify the system of income support for older people who do not receive contributory pensions.

Budget 2006 provides for an increase of €16 per week — 9.6% — for all non-contributory pensioners, bringing the weekly rate of pension to €182 per week with effect from January. This means that significant progress has been made towards the achievement of the Government's commitment to bring the basic state pension to over €200 per week by 2007. In addition, I increased the fuel allowance by €5 per week, from €9 to €14, and the over-80s allowance by €3.60 to €10. These measures will be of considerable benefit to many thousands of non-contributory pensioners.

On budget day, I was also pleased to announce that I proposed to establish, in September 2006, a standardised State — non-contributory — pension, replacing the old age pension and, for recipients aged 66 and over, blind pension, widow's or widower's pension, one-parent family payment, deserted wife's allowance and prisoner's wife's allowance.

All the schemes in question feature a common means disregard of €7.60 per week, which has not increased since the 1970s. The means disregard for the new non-contributory pension will be €20 per week, an increase of €12.40 per week. Over 30,000 pensioners who are currently in receipt of a reduced rate of payment will gain from this change. The increase in the personal rate of payment will be up to €12.50 per week while the qualified adult rate, where applicable, will increase by up to €8.30 per week. This measure, in particular, will benefit all those farmers who are in receipt of an old age — non-contributory — pension at present.

Furthermore, consequent on the increase in the means disregard to €20 per week, a single person, with no other means, will be able to have up to €35,000 in capital and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple.

By any standards, the levels of increases and revised means-test arrangements announced in the budget are exceptional. The proposed modernisation of the current arrangements is also a further demonstration of our commitment to all those who are elderly, including those who continue to farm or lease land.