Thomas Pringle (Donegal, Independent)
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545. To ask the Minister for Social Protection if the figure he gave to Dáil Éireann on 7 March 2017, estimating the cost of reverting to the State pension rate bands that existed prior to the changes introduced in 2012 of approximately €60 million if introduced in January 2018, included the increase in the State pension rate in 2017; and, if not, if he will provide an updated figure. [13773/17]

Leo Varadkar (Dublin West, Fine Gael)
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The Deputy should note that it is very difficult to calculate the figure requested with accuracy. While it is relatively easy to estimate the potential increases in existing State Pension (contributory) payments, it is likely that there would also be costs arising from people who are currently on other payments (such as the State pension (non-contributory) or Increases for Qualified Adults) as a rate band change could see them qualify for a higher rate of contributory pension. The extent of that additional cost is not easy to ascertain as the people concerned may not have made a claim for a contributory pension, and their individual entitlements would not, in many cases, become clear until they made such a claim.

The reply given in the answer referenced by the Deputy stated "It is estimated that the cost of reverting to the rate-bands which existed between 2000 and 2012 would be over €60 million in 2018, if introduced from January 2018, and that this annual cost would rise at a rate of some €10 million each year."

I am informed that the calculations which arrived at this figure were done in advance of the Budget changes. However, if one were to apply the recent rate increases to this figure on a pro ratabasis, it would increase the estimated cost to "over €61.3 million", and I believe it would be conventional to still refer to such an estimate as "over €60 million".

I hope this clarifies the matter for the Deputy.