Reforms to give extra €13 to pensioners

TWO significant changes to the entitlements of old age pensioners come into force this week but they need to be followed up with more substantial reforms in the sector, according to Age Action Ireland.

From Friday, people who earn €20 or more a week will enjoy a €13 increase in their weekly State Pension when the Old Age Non-Contributory pension is scrapped.

The change will come just days after senior citizens were given the right to unlimited free travel at peak times for the first time in 40 years after restrictions in this area were lifted.

However, the advocacy group for the elderly said while the move is very welcome it will have no benefit for people living in rural areas who are still having to pay for private transport.

Age Action Ireland spokesman Gerard Scully said the system is still biased towards those living near bus routes.

“This is very welcome. It will be a big bonus for people who have to get to medical appointments or some who would be going to Mass in the morning.

“What we are calling for now is a voucher system to be put in place for those who do not have access to public transport. There are places where public transport is unusable even when these restrictions are lifted,” said Mr Scully.

This week is also the last for the Old Age Non-Contributory pension, which first came into being in 1908. It will be replaced by the State Pension in line with the Social Welfare Consolidation Act 2005.

The effect this will have is that instead of the standard means test taking account of all income above €7.60, the threshold will rise to €20.

At the current levels of payment this will result in an extra €10 a week for people who have other small sources of income on top of the pension.

Also, non-earning spouses will now be entitled to a full qualified adult pension even when, in most cases, a partner is earning less than €100 a week.

Under the new pension scheme a number of means tested payments will be incorporated together for the over 65s.