Written answers

Tuesday, 30 May 2006

Department of Social and Family Affairs

Social Welfare Code

8:00 pm

Photo of Dan NevilleDan Neville (Limerick West, Fine Gael)
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Question 403: To ask the Minister for Social and Family Affairs the maximum capital that a person can own without it affecting their entitlement to a non contributory old age pension; and if he intends to change this figure. [20427/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Currently, a single old age non-contributory pensioner, with no other means, can have capital of up to EUR28,000 and qualify for a pension at the maximum rate and capital of up to EUR79,000 and still qualify for a pension at the minimum rate. These figures are doubled in the case of a pensioner couple.

In the context of Budget 2006, I was 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/er'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 EUR7.60 per week, which has not increased since the 1970s.

The means disregard for the new non-contributory pension will be EUR20 per week, an increase of EUR12.40 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 EUR12.50 per week while the qualified adult rate, where applicable, will increase by up to EUR8.30 per week.

Consequent on the increase in the means disregard to EUR20 per week, a single person, with no other means, will be able to have up to €36,000 in capital and still qualify for a pension at the maximum rate and capital of up to EUR82,000 and still qualify for a pension at the minimum rate. These figures are 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.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 404: To ask the Minister for Social and Family Affairs when the additional time allowed for people in receipt of the carer's benefit will be sanctioned; and if all employers will have to abide by the new regulations in this matter. [20452/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Section 7 of the Social Welfare Law Reform and Pensions Act 2006 provided for an increase in the duration of payment of carer's benefit from 65 weeks to 104 weeks. This improvement takes effect from Budget Day, 7 December 2005.

Section 48 of the Act also amended the Carer's Leave Act 2001 to provide for a corresponding increase in the duration of carers's leave from 65 weeks to 104 weeks. This provision came into force with effect from 24 March 2006 and the improvement provided for in the legislation applies to all claims made on or after that date.

Issues in relation to the Carer's Leave Act are a matter for my colleague the Minister for Enterprise, Trade and Employment.

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