David Stanton (Cork East, Fine Gael)
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Question 273: To ask the Minister for Social and Family Affairs if his attention has been drawn to the practice whereby increases in pensions lead to subsequent decreases in the amount of rent supplement granted under the supplementary welfare allowance scheme; his views on same; and if he will make a statement on the matter. [33789/06]

David Stanton (Cork East, Fine Gael)
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Question 274: To ask the Minister for Social and Family Affairs if his attention has been drawn to the fact that recent increases in the State pension have led to non-contributory pensioners having their rent supplement reduced by the same amount; if he issued directions to community welfare officers regarding this practice prior to the introduction of the new State pension; if not, if he intends to take action on the issue; and if he will make a statement on the matter. [33790/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 273 and 274 together.

Under the supplementary welfare allowance scheme, which is administered on my behalf by the Community Welfare division of the Health Service Executive, a weekly or monthly rent or mortgage interest supplement is available to assist eligible people who are unable to meet their immediate accommodation needs through their own resources.

Rent and mortgage interest supplements are subject to a means test. They are normally calculated to ensure that, after payment of rent or mortgage interest, an eligible person has income equal to the rate of basic supplementary welfare allowance appropriate to their family circumstances, less a minimum contribution, currently €13, which each recipient is required to pay from his or her own resources.

Any income over and above the basic supplementary welfare allowance rate ordinarily leads to a reduction in the amount of rent supplement payable.

However, a special disregard of up €26 per household per week applies in the means test for rent supplement for people aged 65 or over who are in receipt of a social welfare pension or equivalent payment from another EU country with whom Ireland has a reciprocal agreement.

Furthermore, where a person has income from part-time employment, the rent supplement scheme provides that the first €60 per week of additional income is disregarded in full with half of any additional income earned between €60 and €90 also disregarded. This means that for a person getting the state pension (non-contributory) scheme with weekly earnings of €100, €75 of these earnings would be disregarded for rent supplement purposes. This disregard applies to all persons on rent supplement, including pensioners. Taken together, these two disregards mean that a person on the State pension (non-contributory) is €101 better off for having taken up part-time employment than a person on other social welfare payments with no additional income.

In general, pensioners will not face a reduction in the amount of their rent supplement as a result of an increase in the rate of their primary payment. However, I do intend to continue to monitor the situation.