Edward Timmins (Wicklow, Fine Gael)
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126. To ask the Minister for Employment Affairs and Social Protection to review the capital element of the means test for the non-contributory pension, which has not been updated in many years and unduly penalises people with savings or a small parcel of land. [50761/25]

Dara Calleary (Mayo, Fianna Fail)
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Means testing payments ensures that the State’s limited resources are directed towards those who are in the most need of financial support.

The means test examines cash income (including income from work) and capital (savings and investments), as well as property that someone does not personally use. The house in which a customer resides – their principal residence or home - is not assessed.

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 specific capital rules for the scheme are set out in schedules to the Social Welfare (Consolidation) Act 2005, as amended.

Where someone owns property, or has investments, or any other form of capital, the value of the capital is assessed using a standard formula (set out in the table below), regardless of whether the person is getting an income from the property or investment.

Any prospective changes to means testing arrangements will need to be evaluated and considered within the broader context of overall policy and budgetary considerations.