David Stanton (Cork East, Fine Gael)
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Question 410: To ask the Minister for Social and Family Affairs with regard to the new non-contributory state pension, if there has been a change in the maximum amount of capital a pensioner with absolutely no other means can have and still qualify for a pension at the maximum rate; if there has been a change in the maximum amount of capital a pensioner couple with absolutely no other means can have and qualify for a pension at the maximum rate; if so, the breakdown of how capital is now being assessed; and if he will make a statement on the matter. [31097/06]

David Stanton (Cork East, Fine Gael)
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Question 411: To ask the Minister for Social and Family Affairs with regard to the new state pension, if the increase in weekly means disregard from €7.60 to €20.00 necessitated a change in the means assessment calculations; if so, the details of same; and if he will make a statement on the matter. [31100/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 410 and 411 together.

On the 28th of September 2006 I was pleased to introduce a new enhanced standard State Non-Contributory pension. The changes announced take effect from Friday, 29th September for those over 66 years and include significant increases in the means disregard from €7.60 per week to €20 per week.

Over 30,000 pensioners who were in receipt of a reduced rate of payment have gained from this change. The changes were automatically applied by my Department without inconvenience to the pensioner. The increase in the personal rate of payment for the pensioners benefiting from this change will be up to €12.50 per week while the qualified adult rate, where applicable, will increase by up to €8.30 per week.

No change in means assessment has been required as a result of the increase in the means disregard to €20 per week, with means assessment calculations continuing to be made as heretofore before applying the disregard to the total weekly means assessed. Hence 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. This figure is doubled in the case of a pensioner couple.

Capital is assessed from the savings, investments, cash-on-hands and property (excluding the pensioners own home). The value of all of these items is added together and a formula is applied to their total value to calculate the weekly means as follows:

David Stanton (Cork East, Fine Gael)
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Question 412: To ask the Minister for Social and Family Affairs with regard to the €100 income disregard of the new state pension, the breakdown of the way income above this amount will be assessed by his Department and used to decrease the pension rate payable; and if he will make a statement on the matter. [31101/06]

David Stanton (Cork East, Fine Gael)
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Question 413: To ask the Minister for Social and Family Affairs with regard to the new state pension, the impact earnings of €100 per week from insurable employment will have on the pension rate payable to a pension with €35,000 capital in the bank and no other means; and if he will make a statement on the matter. [31102/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 412 and 413 together.

In the last Budget, I announced a wide range of important measures for non-contributory pensioners. These included a significant increase in the means disregard from €7.60 per week to €20 per week. Consequent on the increase in the means disregard to €20 per week a single person, with no other means, can have up to €36,000 in capital and still qualify for a pension at the maximum rate. These figures are doubled in the case of a pensioner couple.

As part of the pension reforms, I also announced a specific additional disregard of €100 per week where the pensioner is in employment. This new disregard, relating to earnings from employment, is intended as an incentive to facilitate non-contributory pensioners who wish to continue working, or to re-enter the workforce.

The effect of this disregard is that the first €100 of weekly earnings from employment that a pensioner has will be disregarded from the means test. A similar disregard will apply to the pensioner's spouse or partner. The disregard will also apply to people under age 66 who are in receipt of a widow/er's non-contributory pension, deserted wife's allowance and prisoner's wife's allowance.

The rate of pension awarded is based on a means test and income above €100 of earnings is included for the assessment of means. Also included is the value of capital (such as savings and investment) and property (other than the pensioners own home.)

Once the weekly means of the pensioner have been established, the weekly income disregard of €20 is applied. Any income amount remaining after the disregards have been applied reduces the maximum pension payable, based on a scheduled table of income bands. Each increase in weekly means of amounts up to €2.50 has the effect of reducing the pension payable by €2.50 per week. In a case such as the example quoted, where a pensioner has earnings from employment of up to €100 per week and capital of €35,000 with no other means, a pension at the maximum rate is payable.