Dáil Éireann Debate, Tuesday - 28 March 2023
100. Deputy Alan Dillon asked the Minister for Social Protection if she will review the weekly rate of all State pensions to include the full €12 increase introduced in Budget 2023 so people on a reduced pension rate can receive the full increase given the cost-of-living crisis; and if she will make a statement on the matter. [15198/23]
View answerIn September, I announced the largest social protection Budget package in the history of the State. The Social Protection measures announced in the Budget amounted to almost €2.2 billion.
From 1st January 2023, the maximum weekly rate of the State Pension increased by €12 with proportional increases for qualified adults and people on reduced rates of payment. In the case of the State Pension (Contributory), the rate of payment is based on the number of yearly average PRSI contributions; whereas the Non-Contributory State Pension is means-tested, so reduced rates of payment may be awarded as appropriate.
I note your query regarding allocation of the €12 increase across all pensions irrespective of whether a person is in receipt of a full pension. Reduced rate or pro-rata pensions are paid at a fixed percentage of the full rate payment, for instance, a person receiving a payment of 75% of the maximum rate receives 75% of any Budget increase applied to the full rate pension.
Providing the full budgetary increase to those with reduced payments would erode the differentials which exist, and which are intended to reflect the level of contribution, which a person has made to the Social Insurance Fund. It would also mean that those on reduced rate pensions would, on an ongoing basis, benefit disproportionately from Budget increases.
Any changes to the rate of pensions paid would need to be examined in an overall budgetary context.
I trust this clarifies the matter for the Deputy.
