Ruth Coppinger (Dublin West, Solidarity)
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1222. To ask the Minister for Social Protection the cost of introducing a universal State pension of €250. [34595/17]

Regina Doherty (Meath East, Fine Gael)
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According to the latest census figures, in 2016 there were 593,411 people aged 66 and above in the country, and this would have increased in the period since then.

Paying each person aged 66 and over a Universal State Pension weekly rate of €250 that year would have cost over €7.7 billion, if restricted to people resident in the State and not including those who have retired to an address outside the State. This would not include additional costs which are contained within the pension budget such as Widows/widowers pensions for those under the age of 66, Increases for qualified Adults under the age of 66, and the additional allowances that pensions attract. Demographic pressures alone mean that pension costs increase by some €200 million each year, and this annual increase would be greater if the rate was higher and the Universal State Pension was paid at the maximum rate to everyone over 66, regardless of their means and/or PRSI contribution record.

If the State pension became a universal payment for those over 66, at a weekly rate of €250, it is estimated that this might result in an additional cost of some €1.2 billion in 2018, however greater detail would be required to provide a more precise estimate.

It might be noted that such a move would also remove a disincentive to early retirement, as paying PRSI up to pension age would not increase pension entitlements, and this would be expected to result in a further economic cost to the Exchequer and to the Social Insurance Fund.

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.

I hope this clarifies the matter for the Deputy.