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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Social Welfare Benefits.

Means test for old age pensions

Summary

The Minister estimated abolishing the means test would cost £133 million annually, including pensions for about 58,000 additional people. He defended means-testing as a way to target support and said removing it could affect other means-tested schemes; the Chair ruled a question about pension committees separate.

Denis Gallagher Mr. D. Gallagher Fianna Fáil

asked the Minister for Social Welfare the cost of abolishing the means test for payment of old age pensions.

Comment on this
Fergus O'Brien Mr. F. O'Brien Fine Gael

The estimated annual cost, at July 1983 rates, is £133 million.

Comment on this

Would the Minister agree that a means test, as it is commonly known, is an insulting and degrading form of investigation for deciding on eligibility for old age pension? Would he agree also that there seems to be no uniform investigatory procedures as far as this is concerned? Will he, once and for all, remove this unseemly practice from the social welfare code?

Comment on this
Fergus O'Brien Mr. F. O'Brien Fine Gael

I do not see anything whatsoever unseemly about a means test. For example, people could be in receipt of a pension of £20,000 a year and apply for a social welfare pension. Is the Deputy saying they would be entitled to get it? I am sorry, I do not see that as the function of social welfare where our business is to provide means to people who have not got any. I indicated to the Deputy the cost of removing the means test, which would be £133 million. That, then, would have a knock-on effect in other areas of means-testing. Therefore, one would be talking about very large sums of money. I might ask if that would be the way to expend any additional funds one might have.

Comment on this

I do not accept the figure the Minister has quoted as accurate, £133 million; £133 million to do what?

Comment on this
Fergus O'Brien Mr. F. O'Brien Fine Gael

I will give the Deputy the facts.

Comment on this

Please.

Comment on this
Fergus O'Brien Mr. F. O'Brien Fine Gael

There are 334,000 persons over the age of 66, or aged 66; of those 267,000 are in receipt of pensions of one kind or another from the Department of Social Welfare — old age contributory and non-contributory pensions, retirement pensions, widows' pensions and invalidity pensions. This leaves approximately 58,000 people who are not in receipt of any pension from the Department and who would be eligible for the old age pension were the means test to be abolished. The estimated cost of paying the maximum old age pension, at July rates, to an additional 58,000 persons would result in approximately £119 million, and an additional £14 million for giving the maximum rate pension to 20 per cent at present, receiving reduced rates.

Comment on this

At present what is the function of the pension committee? What purpose do they serve?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That is a separate question.

Comment on this

No, it is related to this means test.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

No, it has to do with the cost of abolishing the means test. I am calling Question No. 11.

11.

Comment on this