Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 79: To ask the Minister for Social and Family Affairs her plans to amend the State non-contributory pension income calculation for land owners; and if she will make a statement on the matter. [19804/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I understand that the Deputy is concerned in particular about the current means testing arrangements applying in the case of the State pension (non-contributory) where a land-holder leases land or is otherwise in possession of land which is fallow or idle. Currently, a group in the Department is undertaking a review of means testing arrangements generally and I understand that the issue raised by the Deputy is being considered by the Group.

The State pension (non-contributory) was introduced in 2006 and it replaced a range of non-contributory payments for persons aged 66 and over including the old age pension. While no specific measures in relation to the leasing of land have been introduced in recent years, a wide range of important reforms were announced for non-contributory pensioners, including farmers, in conjunction with the introduction of the new pension. These reforms impacted on farmer pensioners generally including farmers who have let land or are considering leasing their land. Prior to 2006 all of these pension schemes 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. This means that the first €30 per week of all means, including any means from the letting of land, is not taken into account in determining entitlement to a pension.

Increases in rates and other improvements in pensions over many years have been among 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 per week 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. The Government is determined, subject to the availability of resources, to maintain and improve on the progress we have made in improving pensioners' incomes.