158. Deputy John Lahart asked the Minister for Social Protection if, in advance of Budget 2027, he will review the means assessment for the increased rate of pension to ensure that savings held on deposit are not treated as income; and if he will make a statement on the matter. [44527/26]

My Department administers the State Pension (Contributory) and State Pension (Non-Contributory). Both are payable to people aged 66 and older.

Entitlement to the State Pension (Contributory) is based on a person's social insurance contributions. This payment is not means tested and a person's savings have no impact on the rate payable. However, if the claimant applies for an increase to their payment in respect of a qualified adult, the personal means of the spouse, partner or cohabitant must not exceed an income limit. The value of any savings, investments or property (other than a person’s primary residence) belonging to the spouse or partner are assessable as means. The first €20,000 of the value of any savings or capital assets is disregarded. The next €10,000 is assessed at €1 per €1,000. The next €10,000 is assessed at €2 per €1,000. The balance (over €40,000) is assessed at €4 per €1,000.  If savings, investments or property (other than the primary family home) are held jointly by the couple, half is assessed.

Currently an Increase for a Qualified Adult (IQA) to the State Pension (Contributory) is payable at the maximum rate of €268.40 (for a spouse/partner over 66) where the means of the spouse/partner are €100 a week or less, while reduced rates are payable where the means are over €100 and less than €310 per week.  No increase is payable where the means of the spouse or partner are in excess of €310 per week.

The State Pension (Non-Contributory) is a means-tested payment for people who are habitually residing in the State and 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.

For the purposes of the means-test for this payment, the value of any savings, investments or property (other than a person’s primary residence) are assessable as means. In the case of a couple, the savings and assets of a claimant and their spouse or partner are added together, and this total is halved in arriving at the amount attributable to the claimant. The first €20,000 of the value of any savings or capital assets is disregarded. The next €10,000 is assessed at €1 per €1,000. The next €10,000 is assessed at €2 per €1,000. The balance (over €40,000) is assessed at €4 per €1,000.

My Department is conducting a review of means testing within the social protection system.  The aim is to examine various means-tested schemes and identify any issues related to the respective means tests.  With over 140 schemes and services, many of which are means-tested, this is a complex and detailed task. I expect this review to be submitted for my consideration shortly.

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

I trust this clarifies the matter for the Deputy.