Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 164: To ask the Minister for Social and Family Affairs his plans to review the means test in order to waive part of a non-contributory old age pensioner's income from land leasing in order to facilitate the release of land; and if he will make a statement on the matter. [31501/06]

Séamus Brennan (Dublin South, Fianna Fail)
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While there were no specific measures in relation to the leasing of land in the recent Budget, it did contain 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 provided 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 last January. This meant that significant progress was 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 80 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 the establishment, in September of this year, of a standardised State (Non-Contributory) Pension, replacing the six different non-contributory schemes heretofore available to persons aged 66 and over.

All the schemes in question featured a common means disregard of €7.60 per week, which had not increased since the 1970s. The means disregard for the State (Non-Contributory) Pension is now €20 per week, an increase of €12.40 per week. Up to 34,000 pensioners who were in receipt of a reduced rate of payment have gained from this change. The increase in the personal rate of payment is up to €12.50 per week while the qualified adult rate, where applicable, has increased by up to €8.30 per week. This measure, in particular, has benefited all those farmers who were in receipt of an old age (non-contributory) pension, including farmers who have leased land.

By any standards, the levels of increases and reformed means test arrangements announced in the Budget 2006 are exceptional. The introduction of the State (Non-Contributory) Pension is also a further demonstration of our commitment to all those who are elderly, including those who continue to farm or lease land. Further improvements for pensioners generally will be considered in the forthcoming Budget.