Dáil Éireann Debate, Thursday - 6 November 2025
270. Deputy Robert Troy asked the Minister for Social Protection if the income assessment for the non-contributory pension has been increased as part of budget 2026; and his views on whether the assessment should be increased in line with cost-of-living increases. [60608/25]
Amharc ar fhreagraThe State Pension (Non-Contributory) is a means-tested social assistance payment for people aged 66 and over, habitually residing in the State, 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.
My Department has over 90 schemes of which a significant number are means-tested schemes, each with their own means test, on both a statutory and non-statutory basis.
Social welfare legislation provides that means tests take account of the income and assets of the person (and their spouse or partner, if applicable) applying for the relevant scheme. The means assessment includes income from employment, self-employment, occupational pensions and maintenance payments. It also includes property owned, other than the family home, and capital such as savings, shares, and other investments.
When assessing income from employment for the purpose of State Pension (Non-Contributory), PRSI contributions, pension contributions, trade union subscriptions and the first €200 of weekly earnings are deducted from gross earnings. These deductions are set out in Article 148 of the Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (S.I. 142 of 2007) as amended.
There were no changes to these provisions announced as part of the Budget 2026 package. However, the Budget package provided for a general rate increase of €10 across social welfare schemes, effective from January 2026, with proportionate increases for those on means reduced rates in addition to Qualified Adults. This will bring the maximum personal rate of State Pension (Non-Contributory) to €288 per week, a 3.6% increase when consumer prices have increased by 2.7% over the 12 months to September 2025, according to data from the Central Statistics Office (CSO).
This rate increase will allow some individuals, who previously would not have been eligible for State Pension (Non-Contributory) due to their level of weekly means, to receive a means reduced payment. For example, in 2025 an individual with up to €305 of weekly means, as assessed by the Department, would be entitled to a means reduced rate of State Pension (Non-Contributory). This will increase to €315 from January 2026 as a result of the rate increases announced as part of Budget 2026.
Any changes to the means assessment of social assistance schemes would have to be considered in the overall policy and budgetary context.
I trust this clarifies the matter for the Deputy.
