Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 748: To ask the Minister for Social and Family Affairs if he will refer to the disregard of earnings from employment of €200 per week when assessing means for non-contributory State pensions; if he will include persons who are in receipt of small pensions from their previous employers in this category where this is their only source of income; and if he will make a statement on the matter. [1666/08]

Martin Cullen (Waterford, Fianna Fail)
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In 2006, a wide range of important reforms were announced for non-contributory pensioners, including pensioners in receipt of occupational pensions, in conjunction with the introduction of the State pension (non- contributory). The new pension replaced a range of non-contributory payments for persons aged 66 and over including the old age pension.

All these schemes currently featured a common means disregard of €7.60 per week, which had not increased since the 1970s. This general disregard was increased to €20 with effect from September 2006 and was subsequently increased to €30 with effect from January 2007. Approximately, 34,000 pensioners who were in receipt of a reduced rate of payment gained from these changes, including many thousands of persons in receipt of occupational pensions and social security pensions from other countries. Persons in receipt of the reduced personal rates of pensions gained by up to €22.50 per week with additional gains for persons with qualified adults. Of the 34,000 pensioners in receipt of a reduced rate of payment in 2006, about 12,000 of these are now in receipt of the maximum rate of payment. In addition, from September 2006, a specific additional earnings disregard of €100 per week (now €200 per week) was also introduced where the pensioner is in employment i.e. working for an employer. This disregard is intended as an initial incentive to facilitate non-contributory pensioners who wish to continue working, or to re-enter the workforce.

This disregard does not apply to income from any other sources. Income from sources other than employment, including pensions was covered by the enhanced general means disregard of €30 per week referred to above.

The increases and other improvements in pensions over many years have been one of the major achievements of the Government. Since 2002, the level of the State pension non-contributory has increased by over 58% from €134 to €212 following Budget 2008. This improvement has had a marked impact on the living standards of older people enabling them to face the future with a greater sense of security and dignity.

This is most strikingly shown in the numbers of older people deemed to be at risk of poverty, measured on a relative income basis. The most recent figures from the EU Survey on Income and Living Conditions (SILC), which were published late last year, have confirmed the steady improvements of recent years. The risk of poverty rate for older people has fallen from just under 30% in 2003 to 13.6% in 2006. The fall last year was 6.5 percentage points from the previous year and this is before the significant improvement in social welfare pensions in 2007, and those announced in Budget 2008, are taken into account.

The Government is determined to maintain and improve on the progress we have made in improving pensioners' incomes. It is committed to achieving a pension of at least €300 per week by 2012.