Income limits for non-contributory pensions
Colley asked the cost of raising qualifying income limits by £1 and when they were last increased. He argued that inflation had eroded the limits and excluded people who previously qualified; Cluskey defended the Government’s record but did not directly address that claim.
asked the Minister for Social Welfare the estimated cost of increasing by £1 per week the qualifying income limit for (a) old age non-contributory pension (b) widow's non-contributory pension and (c) blind person's pension.
Comment on this
As the reply is in the form of a tabular statement, I propose, with the permission of the Ceann Comhairle, to circulate it with the Official Report.
Following is the statement:
Comment on this
To the best of my recollection, the rate was £26 per year when we came into office. In the first budget introduced by this Government it was increased and has been increased on two occasions since by £1.
Comment on this
Since the Parliamentary Secretary found himself unable or unwilling to answer the supplementary question, would it be correct to say that the limits were last increased in April, 1975?
Comment on this
Would it be true to say that because of the inflation rate since then, the effect in real terms is that a number of people who were included in 1975 are now excluded?
Comment on this
It would be correct to say that allowing for inflation since this Government took office the percentage increase in the allowance has by far exceeded the inflation rate—in fact, the rate of allowance has been increased by several hundred per cent.
Comment on this
I do not know why, perhaps I do, the Parliamentary Secretary keeps evading the supplementary question put to him. The question relates to the limits and the Parliamentary Secretary appears to be saying that the limits were last increased in April, 1975. Since then, the rate of inflation has been approximately 40 per cent. Therefore, the limits obtainable in 1975 have been almost halved in real terms and, therefore, is it not true to say that people included in April, 1975 are now excluded from any allowances whatever and that consequently the amount of the increase is immaterial to them because they are not getting anything?
Comment on this
There is neither a desire nor an intention to evade answering, but the question should be put in its proper context. The performance of this Government in the area of means tests and allowances should be appreciated. I do not intend to accept responsibility for the failure of the previous Government.
Comment on this
Does the Parliamentary Secretary agree that it is a relatively simple matter to increase allowances fairly substantially if at the same time one effectively is excluding many people who were entitled to widows' non-contributory pensions and OAP non-contributory——
Comment on this
The Deputy was Minister for Finance and I am amazed he did not deal with the question of allowances.