Written answers
Thursday, 18 May 2017
Department of Social Protection
Social Welfare Payments Administration
John Brady (Wicklow, Sinn Fein)
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160. To ask the Minister for Social Protection the estimated full year cost of increasing the disability allowance by €20. [23654/17]
John Brady (Wicklow, Sinn Fein)
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161. To ask the Minister for Social Protection the estimated full year cost of increasing the State pension by €20, €25, €30 and €35 respectively. [23655/17]
John Brady (Wicklow, Sinn Fein)
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162. To ask the Minister for Social Protection the estimated full year cost of restoring all working age payments for those under 26 years of age to the full rate of €193. [23656/17]
Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 160 to 162, inclusive, together.
Disability Allowance is a means-tested social assistance payment which is paid to persons aged 16 to 66 who are substantially restricted in undertaking suitable employment arising from a medical condition (subject to satisfying the relevant medical criteria). The estimated cost in 2018 (and a full year) of increasing the weekly personal rate of Disability Allowance by €20, from €193 to €213 per week, is €140.3 million. Each €1 increase in the weekly personal rate would cost €7.03 million in 2018 and a full year.
There is an analogous social insurance payment, Invalidity Pension, which is paid to persons who are permanently incapable of work (subject to satisfying the relevant medical criteria and a minimum number - 5 years - of paid Class A PRSI contributions). Each €1 increase in the weekly rate of Invalidity Pension would cost €3.2 million in 2018 and a full year.
In addition, Blind pension is available for those aged 18 to 66 who are blind or visually impaired. The cost of a €1 weekly personal increase in the Blind Pension is €0.07 million in 2018 and a full year.
The state pension costings sought by the Deputy are detailed in the following table:
Table 1: Cost of increasing all payments for those aged 66 and over by varying amounts
| Scheme | Full year cost of a €20 increase €m | Full year cost of a €25 increase €m | Full year cost of a €30 increase €m | Full year cost of a €35 increase €m |
|---|---|---|---|---|
| State Pension Contributory | 392.4 | 490.5 | 588.6 | 686.7 |
| Widow/er's or Surviving Civil Partner's (Con) Pension – aged 66 and over | 88.4 | 110.5 | 132.6 | 154.7 |
| Deserted Wife's Benefit – aged 66 and over | 2.4 | 3 | 3.6 | 4.2 |
| Death Benefit Pension – aged 66 and over | 0.4 | 0.5 | 0.6 | 0.7 |
| State Pension Non Contributory | 101.2 | 126.5 | 151.8 | 177.1 |
| Carer's Allowance – aged 66 and over | 2.0 | 2.5 | 3 | 3.5 |
| Half Rate Carer's Allowance – aged 66 and over | 5.2 | 6.5 | 7.8 | 9.1 |
| OVERALL TOTAL | 592.0 | 740.0 | 888.0 | 1,036.0 |
The cost of increasing the reduced weekly rates of €102.70 and €147.80, which are payable to recipients of Jobseeker’s Allowance and Supplementary Welfare Allowance who are under 26 years of age, to the maximum rate of €193 per week is estimated at €117.8 million in a full year.
These costs include the cost of proportionate increases for qualified adults, and those on reduced rates of payment, where applicable. It should be noted that these costings are subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients for 2018.
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