Written answers

Tuesday, 20 June 2006

Department of Social and Family Affairs

Social Welfare Code

10:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 67: To ask the Minister for Social and Family Affairs his views on increasing the living alone allowance; and if he will make a statement on the matter. [22951/06]

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
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Question 94: To ask the Minister for Social and Family Affairs the number of people currently in receipt of the living alone allowance each week; the weekly total cost of this payment; the estimated weekly cost of increasing this payment to at least €10; and if he will make a statement on the matter. [22952/06]

Paul McGrath (Westmeath, Fine Gael)
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Question 98: To ask the Minister for Social and Family Affairs when the living alone allowance was first introduced and its rate of payment at the time; when this payment was increased, over the years giving the amount and effective date of each increase; and if he will make a statement on the matter. [22953/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 67, 94 and 98 together.

The living alone allowance or living alone increase as it is now known, is an additional payment of EUR7.70 per week made to people aged 66 years or over who are in receipt of certain social welfare payments and who are living alone. It is also available to people under 66 years of age who are living alone and who receive payments under one of a number of invalidity type schemes.

The increase is intended as a contribution towards the additional costs people face when they live alone. It was introduced in 1977 at the rate of £1.00 (EUR1.27) per week. The amount and effective date of each increase to the payment is given in the table.

The latest figures available show that there were 150,551 people in receipt of the living alone increase at end March 2006, at a cost of about EUR1.16 million per week. The cost of increasing the living alone increase to EUR10 per week is estimated at approximately EUR346,300 per week or EUR18.4 million per annum.

The living alone increase is a targeted measure aimed at a particular group of pensioners. However, the policy in relation to support for pensioners has been, for many years, to give priority to increasing the personal rates of pension rather than focusing on payments such as the living alone increase. This approach ensures that resources are used to improve the position of all pensioners. The position will be kept under review in the context of future budgets.

Table: Amount and Effective Date of each change to the Living Alone Increase
Date Amount (Punts) Euro Equivalent
£
01/04/1977 1.00 1.27
07/04/1978 1.10 1.40
06/04/1979 1.30 1.65
04/04/1980 1.65 2.10
03/04/1981 2.05 2.60
02/10/1981 2.15 2.73
02/04/1982 2.70 3.43
01/07/1983 3.00 3.81
06/07/1984 3.20 4.06
12/07/1985 3.40 4.32
18/07/1986 3.55 4.51
24/07/1987 3.70 4.70
29/07/1988 3.80 4.83
28/07/1989 3.90 4.95
27/07/1990 4.10 5.21
26/07/1991 4.30 5.46
31/07/1992 4.50 5.71
30/07/1993 4.70 5.97
29/07/1994 4.80 6.09
16/06/1995 4.90 6.22
14/06/1996 6.00 7.62
04/01/2002 6.067.70*
* Resulted from a general rounding up of rates consequent on the introduction of the Euro.

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