Paudge Connolly (Cavan-Monaghan, Independent)
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Question 609: To ask the Minister for Social and Family Affairs if he will ensure an adequate income for older women by increasing pensions in line with inflation and increasing the living alone allowance; and if he will make a statement on the matter. [14134/07]

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 (non-contributory) to €200 per week by 2007. The State pension (contributory) has passed this mark and now stands at €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 living alone increase is an additional payment of €7.70 per week made to people aged 66 years or over who are in receipt of certain social welfare payments and who are living alone. It is also available to people who are under 66 years of age who are living alone and who receive payments under one of a number of invalidity type schemes. The increase is intended as a contribution towards the additional costs people face when they live alone.

The policy in relation to support for pensioners has been, for many years, to give priority to increasing the personal rates of pension rather than focusing on payments such as the living alone increase. This approach ensures that resources are used to improve the position of all pensioners and is subject to regular review. It was decided in the context of Budget 2007 to continue this policy with maximum increases of €16 and €18 per week granted to contributory and non-contributory pensioners respectively.

Analysis undertaken in my Department in relation to women of pension age indicates that about 88% of this group receive support through the social welfare system in their own right or as a qualified adult on the pension of their spouse or partner. The Government are committed to raising the qualified adult increase for the spouses and partners (age 66 or over) of contributory pensioners to the level of the state pension (non-contributory). To this end, Budget 2007 provided for an increase of €23.70 per week in the qualified adult payment where the qualified adult is aged 66 or over, bringing it up to a maximum rate of €173 per week. It is my intention to complete the process of aligning the rates in question within three years.

For many years now, the Government has been anxious to ensure that as many people as possible should qualify for pensions in their own right. In this regard, qualifying conditions for contributory pensions have been eased and special pensions such as the pre-53 pensions have been introduced. Those qualifying for contributory pensions are not subject to a means test. In the last two Budgets a particular emphasis has been placed on non-contributory pensions, with significant improvements in the means test and a higher rate of increase being granted than that given on the contributory side. These improvements are of particular benefit to older women who make up the majority of recipients of non-contributory pensions.

As the House is aware, the Government is committed to producing a Green Paper on pensions as part of the social partnership agreement Towards 2016. The Green Paper will include a discussion of all aspects of our pension system including the contribution of social welfare pensions 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.