Dáil Éireann Debate, Thursday - 1 December 2005
8 Mr. Crawford asked the Minister for Social and Family Affairs the action he intends to take as a result of his decision to make old age pensioners a priority for the social reform agenda; and if he will make a statement on the matter. [37274/05]
Amharc ar fhreagraThe needs of older people have been a priority for this Government since taking office in 1997. Since then we have delivered record increases in pensions. Pensions increased by 81% up to January this year, 50% ahead of the increase in the consumer price index over the same period. The household benefits scheme is now available to all those over 70 years of age regardless of their income or household composition, and a range of other measures, including easing of qualifying conditions for pensions to enable more people to qualify for contributory payments, have been introduced.
As I indicated at the publication of the 2006 Estimates, older people are a priority for my social reform agenda. The main aims of this agenda are to deliver a decent pension for all our workers, to offer choices on how older people want to spend their later years and to ensure older people have adequate income. In a social welfare context, the Government has already made a number of commitments to pensions and other matters and I will be working to see the targets in this regard are met over the next two budgets. Chief among these commitments is a target rate of €200 per week for pensions to be reached by 2007.
Significant increases in qualified adult allowances have also been given in recent years and the aim in this regard is to bring these into line with the personal rate of the old age non-contributory pension. Qualified adult allowance rates for those over 66 are now between 66% and 77% of maximum personal rates compared with between 60% and 67% in 2000. Allowances on invalidity pensions have also been brought up to the level of other contributory pensioner rates.
One of my priorities is to offer choices to older people on how to spend their later years and I am anxious to ensure the social welfare system does not limit the choices people can make. In this regard, I am examining the different pension schemes to see to what extent we can facilitate more choice for people.
Occupational pensions are an important part of our overall pension system and, as the House will be aware, I have recently received the report on the national pensions review from the Pensions Board. This is a large and complex document which will need to be fully studied by the Government, and when this is finalised, arrangements will be made to publish the report. I hope it will engender a national debate on our pensions system which will assist us in determining the most appropriate and effective way of delivering a level of income to older people which will allow them to enjoy a long and active retirement.
Does the Minister intend to change the retirement age for old age pensioners shortly, what is his thinking on the issue and when does he intend to make an announcement? Is the Minister aware of problems with private pension schemes that, on maturing, are not really worth much? Is he aware of the deliberations of the most recent meeting of the Joint Committee on Social and Family Affairs, particularly the questions asked by my colleague, Senator Terry? Pensions used to have regard to the qualified adult allowance. Is the Minister aware of representations from the National Women's Council, among other groups, which is concerned at what it sees as an inequity in that area? What is the Minister's thinking in this regard?
To be blunt, is it not time to abolish the limitation rule and to boot out this antiquated social welfare system, which is predicated on male superiority and anathema to the constitutional position? Is it not time to ensure that women are treated equally in the social welfare system?
The people most victimised by the social welfare system are widows who lose their partners at a vulnerable time. The partner might have worked and contributed to the family income, as well as ensuring that the woman was entitled to a contributory widow's pension following the death of the partner. If the woman works, when she reaches the age of 66 insult is added to injury when her contributions are thrown in the bin. She is not allowed to get her old age pension and retain the widow's pension, which she is entitled to because her husband had paid his contributions until his death. Is it not time we got rid of the anomaly which means that a widow does not get her due entitlement?
Is it not time for a radical overhaul of a social welfare system which came into being in the 1920s, which virtually has not been updated since that time and which has treated women in particular as second class citizens and appendages of their partners?
Deputy Stanton asked if I have plans to change the retirement age for the old age pension. The answer is no, I have no proposal to change the age limit of 66 years. However, I am interested in what the UK is doing in this area. There may be a case for encouraging those who choose to work for longer to perhaps receive a higher or enhanced pension. Many countries are examining this issue to find how it can be made more friendly for the individual who might want to work and get on. Many people between the ages of 66 and 76 are keen to work and do not wish to have their pensions interfered with if they do so. Our system, in the 21st century, must reflect this. However, I reiterate that the age limit will not change.
With regard to private pension schemes, the Pensions Board is examining a number of issues with regard to funding. Some companies have holes in their pension schemes and there is a major technical argument as to what constitutes a funding deficit. A safety net system applies in the UK but not in Ireland. My counterparts in the UK tell me that the UK would not take this route again if it had the choice because the system has become more than a safety net and the cost has run to millions of pounds.
On the qualified adult allowance, I met representatives of the National Women's Council, who explained their thinking in this area and with regard to the issues raised by Deputy Penrose. I have stated many times in the House that the social welfare system is not as fair to women as to men, a fact I will not hide. What we must do is to ascertain whether, through the qualified adult allowance system, we can perhaps find a mechanism for paying the allowance directly. I have asked the Department to examine the matter, particularly with regard to occupational pensions. I realise I am like a long-playing record in this regard but of the 900,000 people without pensions, 500,000 are women. There is a real issue with regard to women and the social welfare system, and I intend to return to the subject.
Not much time is left to make the changes.
All budgets and Social Welfare Bills, and every decision I will make as Minister, will reflect what I have said. That will get us some of the way but not all the way. I am not promising to get us to a utopian situation but I am determined that we should begin to move in a better direction, for example, by ensuring that women in the welfare system get a better deal.
Written Answers follow Adjournment Debate.
