John Brady (Wicklow, Sinn Fein)
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583. To ask the Minister for Employment Affairs and Social Protection the difference between the State pension, non-contributory, payment rate and the latest minimum income standards as indicated by an organisation (details supplied). [17890/18]

Regina Doherty (Meath East, Fine Gael)
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The Vincentian Partnership for Social Justice (VPSJ) developed a model of a minimum income standard (MIS). The MIS is defined by the VPSJ as “the gross income a household needs in order to reach their minimum essential standard of living”.

The VPSJ’s Minimum Essential Standard of Living 2017 (MESL) is derived from a negotiated consensus, based on focus groups with representative households, and discussions with policy-makers and experts. According to the VPSJ, it is a standard of living which meets an individual's / household's physical, psychological and social needs, calculated by identifying the goods and services required by different household types in order to meet these minimum needs. The costs incorporate factors such as food, clothing, personal care, health, household goods, household services, communications, social inclusion, education, fuel, transport, personal costs, insurance, savings and contingencies.

It should be noted that the MESL for welfare households assumes that households are eligible for a medical card, and as such, health and insurance costs are reduced accordingly, although the cost of over-the-counter medicines and prescription charges remain. The model for pensioners assumes that the pensioners have the Free Travel pass and the Household Benefits package.

The Minimum Income figures from the Minimum Essential Standard of Living 2017 (the latest publication available) finds that social welfare pensioners in urban areas have adequate levels of income. This is the case for contributory and non-contributory pensioners, living alone and in a couple (Appendix 6A).

For social welfare pensioners living in rural areas, the VPSJ finds adequate income levels for non-contributory and contributory pensioner couples. However, it reports inadequate income levels for social welfare pensioners living alone (Appendix 7A). Excluding housing costs (as housing supplements are separate to weekly social welfare payments), the weekly income gap is reported at €32.65 for non-contributory pensioners living alone.

It should be noted that, in Budget 2018, I announced a number of improvements for pensioners. The maximum weekly rate of the State Pension Non-Contributory (SPNC) increased by €5 per week in March, from €227 per week to €232 per week. The fuel allowance season was extended by one week, from 26 to 27 weeks. A Christmas Bonus of 85% was also paid in late 2017 – for a person on the maximum rate of SPNC, this was a payment of €193.

I am also introducing a new telephone support allowance of €2.50 per week, which is directly targeted at people in these circumstances. Payment of this allowance will commence in June and will be paid automatically to those who are in receipt of both the living alone increase and fuel allowance, i.e., pensioners and people with disabilities of limited means.

Accordingly, since the publication of the report, Budget improvements have likely reduced the identified gap. I look forward to the 2018 Minimum Essential Standard of Living report, which is due to be published in the coming months.