John Deasy (Waterford, Fine Gael)
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Question 55: To ask the Minister for Social and Family Affairs the efforts his Department is making to reduce the risk of poverty levels among people over 65 years of age; and if he will make a statement on the matter. [15319/07]

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 in the last Budget 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 enhanced state pension (non-contributory) for those over 66 years features significant improvements in the means test by increasing the basic means disregard to €30 per week and an incentive of €200 per week of earnings disregarded for pensioners who may wish to earn extra income in employment. 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, which represents a doubling of the fuel allowance in the last two years.

The household benefits package is available to people living in the State aged 66 to 69 years subject to certain conditions, and to all ages over 70. 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 some €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% in the population generally. The overall poverty goal in the NAP inclusion is to reduce the number of those experiencing consistent poverty to 2% to 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.

The forthcoming Green Paper on Pensions will include a discussion of all aspects of our pension system including the contribution that social welfare pensions makes to ensuring an adequate income for older people in retirement which is at the same time sustainable in the long-term. Following publication of the Green Paper, a consultation process will take place to which Government will respond by publishing a framework for future pensions policy.