Paul Kehoe (Wexford, Fine Gael)
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301. To ask the Minister for Employment Affairs and Social Protection if she will consider an increase in the qualified adult allowance to allow for the additional weekly payment of €10 for those qualified adults over 80 years of age; and if she will make a statement on the matter. [45911/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The over 80 allowance is an increase of €10 per week on the basic pension rate, which is automatically awarded to qualified pensioners on attaining 80 years of age. Only one such allowance is payable in respect of each pension.

An Increase for a Qualified Adult (IQA) is paid, generally, where a pensioner has an adult dependent (e.g., a spouse, civil partner or cohabitant who is financially dependent upon him/her), who does not have enough contributions to claim a maximum rate State Pension (Contributory) in his/her own right.

The maximum rate of an IQA for someone over 66 is €222.50, and so in most cases where it is claimed, such couples have additional income or means above their State Pension payments, as otherwise they would obtain a higher payment through the Qualified Adult claiming a State Pension (Non-Contributory) (SPNC).

The SPNC is subject to a household means-test, and has a maximum personal rate of €237 weekly (plus additional allowances, such as the over-80 allowance, where applicable). Where household means result in this payment being reduced (because, for example, the spouse in receipt of the State Pension also has a significant occupational pension), the other spouse may instead claim the IQA, the means test of which is based on his/her own means instead. In such cases, the Qualified Adult can choose the payment which is most beneficial to him/her.

If a person over 80 is in receipt of an IQA and has only limited household means, s/he may claim the State Pension (Non-Contributory), and if that payment is more beneficial, s/he will be paid under that scheme.

The current rate of payment in respect of qualified adults reflects the economies of scale faced by a two-adult household compared to those of a one-adult household. Minimum Essential Standard of Living (MESL) research has found that the minimum needs of the adults in a couple headed household cost 1.5 times (rather than twice) that of an equivalent one adult headed household with children. This finding was backed up by similar research in other countries which have carried out research into minimum budget standards.

Any changes to the proportionate rates of payments for qualified adults would need to be considered in an overall budgetary and policy context.

I hope this clarifies the matter for the Deputy.