Age Action calls for budget increase of €35 in pension payments

AGE ACTION, the national group on ageing and older people, called yesterday for a €35 increase in the state pension in next month’s budget to help tackle pensioner poverty.

Age Action chief executive Robin Webster said the rise would help ease the hardship faced by almost 90,000 pensioners across the country.

“The programme for Government commits the current administration to increasing the state pension to at least €300 a week by 2012,” said Mr Webster.

“This could be done by increasing the pension by €20 a year annually for the next five years.

“However, in the light of existing poverty levels and the rising cost of living faced by pensioners, we are urging the Government to front-load this commitment and increase the pension by €35 on December 5.”

Half of all pensioners depend on the state pension as their sole form of income in retirement.

The state pension (non-contributory) currently stands at €200, while the state pension (contributory) is €209.30.

More than a third (37%) of these pensioners receive the lower amount.

Mr Webster also called for the fuel allowance to be increased from €18 to €28 following steep rises in fuel prices over the past year.

“No older person should be cold in Ireland in their homes this winter and it is essential that older people have sufficient income to enable them to keep their homes at a safe temperature, without having to worry about the cost of the fuel being used,” he added.

Age Action said moer than 90,000 pensioners — almost one in five — are at risk of poverty.

Almost 18,000 of these suffer grinding poverty and are unable to afford such basics as a winter overcoat, a second pair of shoes or meat or fish every second day.

Their plight has worsened in recent months with hikes in the price of essentials like flour, milk, butter and home heating oil.

These Age Action recommendations are contained in its pre-budget submission. Others include:

An increase in the living alone allowance from €7.70 to €20. It was introduced in 1996 but has not been increased since.

The removal of VAT from utility bills and medical aids for unwaged pensioners.

The provision of a voucher system for pensioners living in areas not served by public transport to enable them avail of private transport services.

A co-ordinated package of incentives and supports for older people wishing to remain at work, and those wishing to return to work.

A provision to enable those without full PRSI contributions to buy back contributions retrospectively.