Dáil Éireann Debate, Thursday - 6 October 2016
30. Deputy Willie O'Dea asked the Minister for Social Protection his views on the national pensions framework, which commits to sustain the value of the State pension at 35% of average weekly earnings to prevent poverty among older persons; and if he will make a statement on the matter. [28746/16]
View answerThe National Pensions Framework (NPF) was published in March 2010. It stated that “In order to maintain this aim of preventing poverty for older people, the Government will seek to sustain the value of the State Pension at 35% of average weekly earnings and will support this through the PRSI contribution system.”
The aspirational tone of this commitment recognised that a great many factors can intervene in such a target, notably the rise (and in some recent years fall) of workers' earnings, which also in turn impacts upon workers’ capacity to pay extra PRSI. The text also indicates that any increases in payments required to reach this target would come through the Social Insurance Fund, rather than through Exchequer subvention.
The most recent CSO release on Average Earnings was on 25 August 2016, which stated that average weekly earnings in Q2 of 2016 were €703.83, making the State pension (personal) rate 33.15% of that figure, or 1.85% below the target of 35%. This does not include allowances such as the Living Alone Allowance, the over 80s Allowance, Fuel Allowance, or the Household Benefits package.
There are three measures used by the CSO Survey of Income and Living Conditions which measure poverty among older people and the general population. The most recent survey, which relates to 2014, was released in November 2015. This showed that the percentage of those over 65 at risk of poverty is currently 10.3%, compared to 16.3% of the total population. The rate of consistent poverty among those over 65 is 2.1%, compared to 8.0% of the population.
Any decision to increase the State pension rate will be considered in the context of the Budget.
I hope this clarifies the matter for the Deputy.
