Dáil Éireann Debate, Tuesday - 11 October 2016
248. Deputy Shane Cassells asked the Minister for Social Protection when he will stop the practice of 65 year olds having to sign on for jobseeker's payment until they reach the age of 66 years; and if he will make a statement on the matter. [29312/16]
View answerThe Social Welfare and Pensions Act 2011 provided that State pension age will be increased gradually to 68 years. This began in January 2014 with the abolition of the State pension (transition), thereby standardising State pension age for all at 66 years, which is the current State pension age. This will increase to 67 in 2021 and 68 in 2028. The changes introduced in 2011 were on foot of a Government commitment included in the National Recovery Plan published in 2010, and in the subsequent Memorandum of Understanding with the Troika.
Each year more people are reaching pension age and living longer in retirement. As a result of this demographic change, the number of State pension recipients is increasing by approximately 17,000 annually. This has significant implications for the future costs of State pension provision, which are currently increasing by close to €1 billion every 5 years. The purpose of changes to the State pension age is to make the State pension system more sustainable in the context of increasing life expectancy.
Where an individual has left employment but has yet to reach the State pension age of 66, they may claim another social welfare payment including Jobseeker’s Benefit. They will be awarded Jobseeker’s Benefit provided they satisfy the conditions of the scheme including the requirement to be available for and genuinely seeking full time employment.
However, some specific measures apply to someone claiming jobseeker’s benefit from a date after their 65 birthday. These recipients continue to be eligible for that payment until reaching pension age. While this is currently up to their 66th birthday, this approach will continue to extend their jobseeker’s benefit entitlement continuing for another year when the pension age rises to 67, and indeed a further year when it rises to 68 in 2028. This eligibility is of course still subject to satisfying conditions such as the ‘genuinely seeking work’ condition.
Jobseeker activation criteria have been eased for people aged 62 and over. They are still able to avail voluntarily of an array of supports, which are available from my Department if they wish to return to work, training or education. However, sanctions will not be applied to this cohort, should they decide they do not wish to engage with the activation process.
Special arrangements have also been made so that the majority of older people in receipt of a jobseeker’s payment will have to register with their local office only once a year and their payments will be paid directly into their bank accounts. These provisions have enabled these individuals to ease their transition into one of the jobseeker’s schemes until they become eligible for a State pension on their 66th birthday.
I trust this clarifies the matter for the Deputy.
