Martin Ferris (Kerry North, Sinn Fein)
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Question 47: To ask the Minister for Social and Family Affairs his views on whether the State pension system is equitable and that it ensures pensioners can live with dignity and not in poverty. [8008/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Since taking office this Government has made the needs of older people a priority with the inclusion of several commitments in the Programme for Government aimed specifically at the group. I am very pleased to say that we have delivered on the commitment to increase the State pension to €200 per week by 2007. In addition, the State pension (contributory) has been increased by €16 per week to €209.30 per week. Pension increases have been well ahead of inflation thus ensuring that not only is the real value of pensions maintained but that they are significantly improved in real terms. For instance, since 1996, and including the budget increases, pensions have increased by almost 119%, or about 57% in real terms.

The State pension (non-contributory) is a social assistance scheme which, in common with all other such schemes, features a means test to ensure that resources committed to social assistance payments are used to provide support to and improve the position of those who are most in need. The new enhanced State pension (non-contributory) for those over 66 years, which I introduced at the end of September, features significant improvements in the means test and an incentive of €100 per week of earnings disregarded for pensioners who may wish to earn extra income in employment. I was happy to be able to build on these improvements in Budget 2007 by increasing the basic means disregard to €30 per week, and at the same time enhancing the employment incentives by increasing the earnings disregard to €200 per week. Both of these disregards are doubled for pensioner couples.

Other measures of benefit to older people include last year's increase in the over 80 allowance of €3.60 per week, bringing it to €10 per week and this year's increase in the fuel allowance of €4 per week, bringing the allowance to €18 per week. This represents a doubling of the fuel allowance in the last two years. The household benefits package, which comprises telephone allowance, electricity/natural gas allowance and free TV licence is available to people living in the State aged 66 to 69 years subject to certain conditions, and to over 70s. The electricity/natural gas allowance is of immense benefit to older people who have, in general, greater heating requirements. The value of the natural gas allowance has been increased and the number of free units of electricity increased by 600 units a year to 2,400 units. The household benefits package for a pensioner is currently valued at €985 per year. The free travel scheme, with time restrictions removed and an enhanced All-Ireland package is also of considerable benefit to many pensioners.

The 2005 SILC report published by the CSO, estimates that the level of consistent poverty among older people in 2005 was 3.7% compared to 7% generally. The overall poverty goal in the NAPinclusion is to reduce the number of those experiencing consistent poverty to between 2%-4% by 2012, with the aim of eliminating consistent poverty by 2016. Achievement of this goal is already well advanced in the case of older people.

As the House is aware, the Government is preparing a Green Paper on pensions and it is expected that this will be finalised by the end of this month and published as soon as possible thereafter. The Green Paper will include a discussion of all aspects of our pension system including the contribution that social welfare pensions can make to ensuring an adequate income for older people in retirement which is at the same time sustainable in the long-term. Following the publication of the Green Paper, a consultation process will then take place and the Government will respond to this by publishing a framework for future pensions policy.