John Deasy (Waterford, Fine Gael)
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Question 383: To ask the Minister for Social and Family Affairs his plans to restore the full adult dependant allowance to pensioners on reduced contributory pension rate who had initially been granted a full adult dependant allowance which has subsequently been reduced; and if he will make a statement on the matter. [42715/06]

Séamus Brennan (Dublin South, Fianna Fail)
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In order to qualify for the maximum rate of the state pension (contributory) a person must, amongst other qualifying conditions, achieve a yearly average of at least 48 contributions paid or credited on their social insurance record. Reduced pensions are paid to those with yearly averages as low as 10 contributions and arrangements are also in place for the payment of pro-rata pensions to those with mixed rate insurance records or contributions from different countries.

Reduced rate or pro rata pensions are paid at a fixed percentage of the full rate payment in order to reflect the level of contribution which individuals make and this principle also applies to the increase for qualified adults. However, in the case of some reduced rate contributory pensions the qualified adult increase was being paid at a higher rate than that being paid in respect of the pensioner. In these reduced rate cases the personal rate is reduced to reflect the average level of contributions paid but in some cases the maximum increase for qualified adults was being paid.

In Budget 2001 the Government began a process the object of which is to increase the payment for qualified adults (age 66 or over) to the same level as the personal rate of the state pension (non-contributory). Accordingly, it was decided to standardise increases for qualified adults by ensuring that they reflect the level at which the personal rate is paid as was already the case with most reduced rate contributory pensions being paid. The new arrangements applied to claims made after April 2001. Special arrangements were, however, introduced for reduced rate cases where the full qualified adult increase was already being paid. No reduction in payment was made in 2001 and a Budget increase has been applied to this group each year since then.