Seán Canney (Galway East, Independent)
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655. To ask the Minister for Employment Affairs and Social Protection if he will consider increasing the income thresholds for State pension (non-contributory) in light of the significant increase in the cost of living in recent years; and if he will make a statement on the matter. [39326/25]

Dara Calleary (Mayo, Fianna Fail)
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The State Pension (Non-contributory) (SPNC) is a means-tested payment for people aged 66 and over, habitually residing in the State, who do not qualify for a State Pension (Contributory), or who only qualify for a reduced rate contributory pension based on their social insurance record.

The system of social assistance supports provides payments based on an income need. The means test plays a critical role in ensuring that the recipient has a verifiable income need and that resources are targeted to those who need them most.

Social welfare legislation provides that means tests take account of the income and assets of the person (and their spouse or partner, if applicable) applying for the relevant scheme. The means assessment includes income from sources such as employment, self-employment, occupational pensions and maintenance payments. It also includes property owned, other than the family home, and capital such as savings, shares, and other investments. Income earned under the rent-a-room tax relief scheme is exempt from the means test.

An applicant for SPNC can have savings or assets of up to €20,000. Also an applicant is entitled to a €200 disregard on earnings meaning they can have earnings of up €200 per week from paid employment and still qualify for a full SPNC. After this, the first €30 per week of means does not affect the rate of the pension. After that first €30, the pension is reduced by €2.50 for every €2.50 of means. If a person’s assessed weekly means is over €305.00, they will not be eligible to receive the SPNC.

Means tests and income thresholds are kept under regular review and a number of significant changes have been made in recent years. In particular, a number of changes to means testing which provide for higher income disregards have been introduced. These disregards ensure that, where people are in receipt of a means tested payment from my Department and are working, a certain level of income from that work is not assessed in the means test.

A comprehensive review of means testing in the social protection system is currently under way in my Department. The purpose of the review of means testing is to look at the different means tested schemes and to identify any issues in terms of the application of their respective means test.

The outcome of the review will inform decisions regarding any potential changes to means testing, including in the run up to Budget 2026. All prospective changes to means testing arrangements will have to be considered in both an overall policy and budgetary context.

I trust this clarifies the matter for the Deputy.