Mark Wall (Kildare South, Labour)
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403. To ask the Minister for Employment Affairs and Social Protection the cost of increasing the cash income a person can earn under the State pension (non-contributory) by €100. [40598/25]

Dara Calleary (Mayo, Fianna Fail)
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The Department of Social Protection provides income supports through a mixture of contributory payments (which are based on a person's social insurance record) and means-tested social assistance payments. To receive either a contributory or social assistance payment a person must qualify for that payment in their own right.

The State Pension (Non-Contributory) is a means-tested social assistance 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. The income from renting a room in an owner occupied property can qualify for a maximum disregard of up to €14,000 per annum (or €269.23 weekly).

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.

The Department is unable to provide a costing for increasing the disregard on income in respect of the SPNC by €100 as it does not have sufficiently granular means data to calculate a costing estimate. Such an estimate would also have to take into account the impact of overall household means on such an increase, which again is not possible due to a lack of sufficiently granular means data.

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.