The State Pension (Non-Contributory) is a means-tested payment for people aged 66 and over, who have a legal right of residence and habitually reside in the State, and who do not qualify for State Pension (Contributory), or only qualify for a reduced-rate contributory pension based on their social insurance record.
Social welfare legislation provides that, for social assistance schemes such as the State Pension (Non-Contributory), all income and capital (such as savings, investments and property other than the family home) belonging to the claimant and his or her spouse/partner/cohabitant, where applicable, are assessable for means assessment purposes.
The system of social assistance supports provides payments based on an income need. The means test plays a critical role in determining whether or not an income need arises as a consequence of a particular contingency – such as disability, unemployment or old age. This ensures that each recipient has a verifiable income need and that resources are targeted to those who need them most.
The State Pension (Contributory) which is based on a person's social insurance contribution record has significant supports for those who took time out of the workforce to provide care. For those who have the minimum 520/10 years' paid qualifying contributions, up to 20 years HomeCaring Periods can be added to increase the rate of their pension payment, a person has been providing full time care for 20 or more (non-consecutive) years for an incapacitated dependent, they can be provided with Long-Term Carers' Contributions (LTCCs). These LTCCs can be used to fill in gaps in a person's contribution record for the State Pension (Contributory), including satisfying the minimum 520 contributions required to qualify.
Where a person's spouse or partner is in receipt of a State Pension (Contributory), they can also apply for an increase for a Qualified Adult, amounting up to 90% of a full rate State Pension (Contributory). This will be based on the Qualified Adult's means. The Increase for a Qualified Adult will automatically be paid directly to the adult dependant unless the adult dependant chooses to have it paid with the spouse's or partner's payment instead.
I hope this clarifies the matter for the Deputy.
