Dáil Éireann díospóireacht -
Wednesday, 7 Jun 2000

Vol. 520 No. 4

Written Answers. - Anti-Poverty Strategy.

Róisín Shortall

Ceist:

163 Ms Shortall asked the Minister for Social, Community and Family Affairs if he will make a statement on the marked increase in the risk of poverty among households where the head is aged 65 or over, as identified in the analysis of the 1997 Living in Ireland Survey [15860/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

The analysis of the 1997 Living in Ireland Survey, mentioned by the Deputy, was recently highlighted in a report prepared in 1999 by the ESRI for the National Council on Ageing and Older People. Wide-ranging in its scope, the report examines the causal effects of poverty and social deprivation among older people through a variety of dimensions and, as such, it is a valuable addition to the body of research on issues relating to the needs of our older people. It covers the period from 1987 to 1997 and, therefore, provides an informative, historical analysis for policy makers.

As the report points out, in income terms the position of older people disimproved over the ten year period covered. This is precisely why, on taking up office, the Government set ambitious goals in order to secure the future of our older people. Our Action Programme for the Millennium set a target old age pension rate of £100 by 2002. We are well on the way to achieving this with record increases in pensions rates over the last three budgets.

In 1997 the maximum rate of the old age (contributory) pension at £78 per week equated to 28% of average industrial earnings. From May 5th, at £96.00 per week it equates to over 30% which is working towards the 34% recommendation of the Pensions Board in its report Securing Retirement Income.

In last year's review of the programme, the Government committed itself to the early achievement of the £100 target for old age (contributory) pension and, furthermore, extended it to all social welfare old age pensions by 2002. In addition, over the lifetime of the Government, all old age pensions will increase in line with average industrial earnings.

The National Council on Ageing and Older People report acknowledges the important role that the free schemes play in supporting the more vulnerable of our older people. From October this year, I have provided that entitlement to the free schemes will be extended to all people over 75 years of age regardless of the household income or composition. In addition, a review of the free schemes has been published by the Policy Institute, Trinity College Dublin, and copies have been made available to Members of both Houses.

I will examine this report in detail in the context of future budgetary policy. In particular, I intend to build on the improvements in this area by moving towards the establishment of a single household benefits scheme in future budgets. This will amalgamate the free electricity, free TV licence and free telephone rental allowance into one combined household benefits package based on the standard living alone qualifying criteria.

The Programme for Prosperity and Fairness provides an opportunity to develop new approaches to important strategic issues under consideration in the social inclusion area. The National Anti-Poverty Strategy is the Government's key policy document in relation to tackling poverty and social exclusion and it is proposed, under the programme, that the National Anti-Poverty Strategy will be updated and the underlying methodology reviewed and revised where appropriate. In particular, new targets will be considered under the themes of older people, as well as women's poverty, child poverty, health and housing/accommodation. This process will be completed during the first 18 months of the programme.