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Pensions Reform

Dáil Éireann Debate, Thursday - 8 March 2018

Thursday, 8 March 2018

Ceisteanna (609)

John Brady

Ceist:

609. Deputy John Brady asked the Minister for Employment Affairs and Social Protection the protections that will be in place to ensure that poverty is avoided for those in receipt of the State pension (non-contributory) in view of the plans detailed in the Roadmap for Pensions Reform to link the State pension (contributory) amount to the consumer price index and wage levels; and if she will make a statement on the matter. [11672/18]

Amharc ar fhreagra

Freagraí scríofa

The Roadmap for Pensions Reform commits the Government to examine and develop proposals this year, to set a formal benchmark of 34% of average earnings for the State pension (contributory). These proposals when developed later this year will also set out what this will mean, in practical terms, for those in receipt of the State pension (non-contributory). I can assure the Deputy, however, that the rate of the non-contributory pension will be at least maintained, in real terms, for the duration of this Government, as set out in the Programme for Government.

Last year, a person solely dependent upon State pension (non-contributory) pension and in receipt of full secondary benefits, already received pension payments above the 34% benchmark. The €5 increase later this month will bring the weekly rate to €232 (95.36% of the maximum rate of the contributory pension), with allowances and secondary benefits also available where applicable, including Fuel Allowance, Household Benefits, Living Alone Allowance, Telephone Support Allowance and Over-80 Allowances.

Current poverty rates for people over 66 are much lower than among the general population, with approximately half as many at risk of poverty (8.77%), and less than a fifth as many (1.56%) experiencing consistent poverty. This is a direct result of the success of the Government in defending the core rates of pension payments during the downturn, and the subsequent increases now that the economy has been revitalised.

I hope this clarifies the matter for the Deputy.

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