Terence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

35. To ask the Minister for Social Protection her plans to increase the State pension, household benefits package and any other measures that will benefit pensioners; and if she will make a statement on the matter. [26664/15]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

State pensions account for the single largest block of social welfare expenditure, and while expenditure on pensions is increasing because of demographic pressures, this is being managed within the overall welfare budget. This year, the Department of Social Protection will spend an estimated €6.675 billion on pensions, i.e., 34.4% of all welfare expenditure, and an increase of €168 million over 2014. The overall concern of the Government in recent budgets has been to protect the primary weekly social welfare rates where possible. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.

The most recent change in the core rate of State pensions was in Budget 2009, when the State pension contributory was increased by 3.1% to €230.30, and the non-contributory pension by 3.3% to €219.00. Both of these are the maximum personal rates, and there are increases for dependant adults which attracted similar increases at that time. Core pension rates were not reduced in the period since then, despite significant pressures on Exchequer spending, and a period of significant deflation which has protected those increases in real terms from erosion by inflation. This has had the effect of protecting older people from poverty, and all CSO figures show that those over 65 are significantly less likely to be at risk of poverty or deprivation than those aged under 65.

The Department will spend €227 million this year on the household benefits package for approximately 415,000 customers. There were no changes to the household benefits package arising from Budget 2015.

The recovery has allowed some leeway to increase spending in targeted areas, which is why I was able to restore a partial Christmas bonus last year, benefitting over 575,000 pensioners and 1.23 million welfare recipients in total. I also increased payments for certain pensioners by increasing the rate of the Living Alone Allowance in Budget 2015 to €9.00.

Any decision to increase the rates would have budgetary consequences and would have to be considered in the context of budget negotiations.