Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

Question 35: To ask the Minister for Social and Family Affairs if the introduction of the €100 income disregard has been successful in encouraging the labour market participation of non-contributory State pensioners; and if he will make a statement on the matter. [43260/06]

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 69: To ask the Minister for Social and Family Affairs if he has satisfied himself that all non-contributory State pensioners who are eligible, are availing of the €100 income disregard scheme; and if he will make a statement on the matter. [43259/06]

Séamus Kirk (Louth, Fianna Fail)
Link to this: Individually | In context

Question 98: To ask the Minister for Social and Family Affairs the impact he anticipates that the increased earnings disregard will have for non-contributory State pensioners; and if he will make a statement on the matter. [43162/06]

Pat Carey (Dublin North West, Fianna Fail)
Link to this: Individually | In context

Question 110: To ask the Minister for Social and Family Affairs the effect for non-contributory State pensioners of the increased earnings disregard; and if he will make a statement on the matter. [43151/06]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 35, 69, 98 and 110.

In the Budget of December 2005, I announced a wide range of important reforms for non-contributory pensioners in conjunction with the introduction of the State Pension (non- contributory). These reforms include improvements to the means test for pensioners, the raising of the weekly means disregard from €7.60 to €20. As part of the pension reforms, I also announced a specific additional disregard of €100 per week where the pensioner and/or spouse 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 measure is that the first €100 of weekly earnings from employment is fully disregarded from the means test. A similar earnings disregard of €100 per week also applies to the pensioner's spouse or partner. The disregard also applies 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 new disregard was effective from the 29th September 2006. In June 2006 all relevant non contributory pension customers in receipt of a reduced pension, some 48,000, were notified by my Department of the impending change to the employment disregard. As a result, I am satisfied that all customers who are in a position to avail of the disregard are fully informed of these changes.

The customers benefiting from the new €100 earnings disregard, currently numbering 380, are in addition to the approximately 500 pensioners who already avail of the 30 hours disregard from income earned as a home help with the HSE.

Further to my commitment on encouraging our State pensioners back into the workplace I announced in the Budget earlier this month that I would be doubling this disregard from €100 to €200 effective from January 2007. This specific rise in earnings disregard of €200 per week, equivalent to €10,400 a year will allow a State Pensioner the opportunity to earn additional income through employment while at the same time retaining their full pension entitlements.

Labour force participation by older people has been declining over recent years and I would expect that the doubling of the disregard should act as a further incentive to pensioners to return or remain in the workforce, thereby reversing the trend. It should also help address the concerns of pensioners about reductions in pensions and benefits, along with affording them the opportunity to increase their weekly income and standard of living.

The change to State Pension (Non-Contributory) employment disregard should not only be seen as society's recognition of the contribution our older people have made to the building of modern Ireland, but also sends out the message that we value the potential contribution to society these men and women can make. While it is not yet clear how successful this initiative will be in attracting labour market participation nonetheless early signs are encouraging and I am optimistic for future active age employment.