Pat Carey (Dublin North West, Fianna Fail)
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Question 179: To ask the Minister for Social and Family Affairs the measures he has put in place in his past two budgets to protect and improve the income of retired workers; and if he will make a statement on the matter. [11296/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Since taking office this Government has made the needs of older people a priority, with the inclusion of several commitments in the programme for Government aimed specifically at older people. One of these is a commitment to increase the old age pension rate to €200 per week by 2007. Significant progress has been made towards this objective.

Pension increases in the last two budgets have been well ahead of inflation, thus ensuring that the real value of pensions is maintained and improved. In budget 2005 the personal rate of contributory pensions was increased by €12 per week or 7.2%. In budget 2006 the increase was €14 per week, or 7.8%, bringing the maximum rate to €193.30. In the case of non-contributory pensioners, the increases in the last two budgets were €12 per week, 7.8%, and €16 per week, 9.6%. The current rate is €182 per week.

Progress has also been made in increasing the level of qualified adult allowance for pensioner spouses to the level of the old age, non-contributory pension with increases granted over a number of budgets. Payments for qualified adults over 66 years on contributory pensions increased by €9.30, 7.2%, and €10.60, 9.7%, per week over the last two budgets. The equivalent increases for qualified adults on non-contributory pensions were €7.90, 7.8%, and €10.60, 9.7%, per week. The current rates for qualified adults over 66 on contributory and non-contributory pensions are €149.30 per week and €120.30 per week respectively.

Other measures of benefit to older people include an increase in the fuel allowance of €5 per week, bringing the allowance to €14 per week, and an increase in the over-80 allowance of €3.60 per week, bringing it to €10 per week. Improvements have also been made in the means test for non-contributory pensions with the capital allowance increased from €12,697.38 to €20,000 in budget 2005 and an increase in the basic income disregard from €7.60 to €20 per week, together with the introduction of an earnings disregard of €100 per week in budget 2006.

The needs of older people will continue to be a priority for this Government and I will continue to seek opportunities to improve on the support we provide to them through the pensions system and other social welfare schemes.