Written answers

Tuesday, 11 December 2007

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 511: To ask the Minister for Social and Family Affairs if, in view of the fact that one in five pensioners are at risk of poverty, under the programme for Government undertaking to increase the basic State pension to at least €300 by 2012, he will ensure that this provision is front loaded and not drip fed at the rate of €20 per year; and if he will make a statement on the matter. [33242/07]

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 514: To ask the Minister for Social and Family Affairs his plans to reduce the discrepancy between the shortfall between the additional cost for older persons, over 70 living alone which result in a weekly shortfall of €47 to €90 as compared to a €9 to €62 shortfall in the same period for couples of a similar age; and if he will make a statement on the matter. [33245/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 511 and 514 together.

The Programme for Government features a number of commitments in relation to social welfare pensions, including a commitment to increase the basic State pension to €300 per week by 2012. Progress towards this target was announced in last week's Budget, where the State Pension (Contributory) was increased by €14 per week, bringing it up to €223.30 per week. An increase of €12 per week was granted on the State Pension (Non-Contributory), bringing it up to €212 per week.

Over the last number of Budgets, pension increases have been well ahead of inflation ensuring that not only is the real value of pensions maintained but that they are significantly improved in real terms. This is clearly evident in the recently published EU Survey of Income and Living Conditions (SILC) which showed that the position for older people improved significantly from 2005 to 2006, with the 'at risk of poverty' rate falling from 20.1% to 13.6%. Furthermore, the number of people aged 65 and over at risk of poverty was significantly lower than for the general population, where 17% are considered to be at risk of poverty.

While various studies use different measures of calculating income needs the policy in relation to support for pensioners has been, for many years, to give priority to increasing the rates of pension payable to all pensioners rather than targeting individual groups such as those that are living alone. The most recent SILC figures show that this approach has resulted in a very significant reduction in the poverty risk for older people in general. This approach was continued in Budget 2008 and the position will be kept under review.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Question 512: To ask the Minister for Social and Family Affairs his commitment under the programme for Government to increasing the qualified adult allowance rates to the level of the full State pension; and if he will make a statement on the matter. [33243/07]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The Programme for Government contains a commitment to complete the process begun in Budget 2007 to raise 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). Spouses and partners of non-contributory pensioners may receive a pension in their own right at age 66. In Budget 2008, I was pleased to provide an increase of up to €27 per week in the qualified adult rate where the qualified adult is aged 66 or over. This brings the maximum rate to €200 per week which represents 94% of the target in the Programme for Government. It is my intention to complete the process of aligning the rates in question within three years.

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