Government considering cuts to old-age pension to meet budget target

The Government is looking at the possibility of cutting the old-age pension in order to meet its budget targets, according to reports.

More than 500,000 pensioners receive payments of up to €230 per week from the state, and the total cost of the state contributory pension is €5.3bn per year.

According to the Sunday Independent, senior coalition sources said that a proposal to means-test the pension has been overtaken by discussions that it could be cut instead.

While details of the proposal are not finalised, it is estimated that a reduction of €10 a week across the board would save the exchequer between €250m and €300m, reports claim.

The Political Editor of the Sunday Independent, John Drennan, said the story emerged "from a mix of administrative and political sources."

"It's a fairly serious outlining of the stark realities and difficulties which are being faced by the Government in this regard - there are serious issues on the table," he said.

"I think tensions are going to rise seriously between the coalition partners."

Eamon Timmins, head of advocacy and communications with Age Action, said elderly people are "barely hanging in there."

"If the state was to go cut the state pension by a further €10, it would cause untold hardship and untold suffering among older people."