Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 360: To ask the Minister for Social and Family Affairs the reason the income disregard of €200 per week under the State pension, non-contributory does not apply to self-employment; her plans to review this policy; and if she will make a statement on the matter. [33721/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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In 2006, a wide range of important reforms were announced for non-contributory pensioners, including self employed pensioners, 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 self employed pensioners. 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.

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 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 self employed income was covered by the enhanced general means disregard of €30 per week referred to above.