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Age Action Calls for €9 per week Rise In Old Age Pension in Budget 2020

Organisation also proposes that Government commission research on the Cost of Ageing to ensure policy meets needs of ageing population

Age Action, the advocacy organisation for older people, has called for the state’s Old Age Pension to increase by €9 per week in Budget 2020. The call was made at today’s Pre-Budget Forum, which is being organised by the Department of Employment Affairs and Social Protection and is being held in Dublin Castle’s Conference Centre.

Celine Clarke, Age Action’s Head of Advocacy and Communications, said that a €9 increase in the weekly Old Age Pension would be a key step in building towards the Government’s own commitment that the pension should be set at 35% of average weekly earnings.

“The National Pensions Framework was published almost 10 years ago and it committed the Government to benchmarking the Old Age Pension at 35% of average weekly earnings. In order to move the current pension payment towards the delivery of that target, we are calling on the Government to increase the weekly pension payment by €9,” Celine Clarke said.

Ms Clarke provided additional context to Age Action’s call for a €9 per week pension rise, when she explained that in 2009, the weekly income for pensioners depending on the State – when all the benefits were added together – was €265.44, this year it’s €273.63 – only €7.89 higher than it was higher than it was 10 years ago. 

“While pensions have increased by a welcome €5 per week over the last few years, there is no clear and transparent formula informing these increases, and Ireland is also unusual in setting the pension rate in the budget every year. Age Action is urging the Government to consider applying a triple lock formula for pension increases – namely, guaranteeing that the basic State pension will rise by a minimum of either 2.5%, the rate of inflation or average earnings growth, whichever is the larger.”

In addition to the proposals on pension increases, Age Action is also calling for:

  • The commissioning of research by Government on the Cost of Ageing to inform the development of policy so that the country can meet the needs of our ageing population – a similar exercise has been carried out in relation to the Cost of Disability;
  • Increase the income threshold for all means-tested benefits in line with increases to the Old Age Pension and secondary benefits;
  • Increase the Living Alone Allowance by €5 per week;
  • Increase the Fuel Allowance rate by €2.35 and reintroduce a 32-week payment period.

Pre-Budget Submission to Department of Employment Affairs and Social Protection

ENDS

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Age Action Welcomes the launch of the Housing Options for our Ageing Population Policy Statement

Responding to today’s launch of the Housing Options for our Ageing Population Policy Statement, Paddy Connolly, CEO of Age Action, Ireland’s leading advocacy organisation  said;

“This is a welcome joint initiative by the Department of Housing, Planning and Local Government and the Department of Health because it begins to address the needs of our ageing population in terms of ageing in place.  The commitment to provide real choice to people through a catalogue of housing with supports is welcome, especially the recognition that an ageing population has diverse needs.”

He continued “Age Action believes that we should have a choice to age in place which means the creation of age friendly environments, including the provision of support services locally, which enable people to remain in their own homes and in communities for longer. The wider support needs of people as we age was to be addressed through the National Positive Ageing Strategy which was published in 2013 and is yet to be implemented.”

Budget 2019

Budget 2019

Age Action calls for a fair budget on 9th October that protects older people

Age Action, Ireland’s leading advocacy organisation for older people, has called on the Government to protect the incomes of older people and to invest in home care.

“Next week the Government must deliver a budget which protects older people, one that recognises the contribution made over decades by more than 600,000 workers, homemakers, carers and entrepreneurs who are now pensioners” said Anna McCabe, Interim CEO, Age Action.

Publishing its top priorities for Budget 2019 the organisation is highlighting the need to increase the state pension to meet the rising costs of living for older people and to tackle inadequate home care provision.

Rising Costs of Living

“Pensioners are increasingly worried about being able to pay their essential bills or of being forced into a nursing home because there are no home supports available” said Anna McCabe, Interim CEO, Age Action.

She went on “A growing number of older people worry about making ends meet in the face of rising costs such as healthcare, energy bills and insurance. Many of these increased costs are solely related to age.”

Older people are slow to benefit from the improved economic climate and are showing a slower recovery from poverty. Cuts made in recent years to income supports such as the Fuel Allowance, the Bereavement Grant and the Christmas Bonus, combined with new taxes and rising prices, are causing many older people to remain at risk of poverty.

Earlier this year hundreds of Age Action members met across the country and agreed their priorities for this year’s budget, which have been costed and published today:

  1. Increase the weekly State Pension by €5 per week to build towards achieving the Government's commitment in the National Pensions Framework of a State Pension set at 35 per cent of average weekly earnings [Cost: €160.9 million]
  2. Increase the cost of the Living Alone Allowance by €3 per week [Cost: €32.8 million]
  3. Reverse the changes introduced in 2012 to the State Pension system reducing the number of bands from six to four [Cost: €73 million]
  4. Increase the Home Supports budget by 26% to begin to meet unmet need. [Cost: €106 million].
  5. As a first step towards reinstating the over 70s medical card, expand the range of services provided by the GP visit card to include prescriptions to those over 70 [Cost: €61.5 million].
  6. Remove the GMS prescription charge for over 70s medical card holders [Cost: €42 - 44 million]

Crisis in Homecare

Age Action today also highlighted the need for investment in supports to enable older people to remain in their homes for longer.

The numbers of home help hours and people in receipt of the service have dropped since 2008, despite the sharp growth in our ageing population.

“Every year 20,000 more people turn 65, and we will need an additional 7.2 million Home Help Hours a year by 2030. This unmet need is particularly worrying given that 6,458 older people were waiting for new and additional Home Support services as of May of this year” said Anna McCabe.

Ireland needs a Statutory Home Care Scheme

“Home help hours and home care packages are simply not available in many parts of the country, with provision of care varying greatly across the regions. This means many older people simply do not have the option of being cared for at home, more families are struggling to cope without home help, and there is more pressure on carers.”

“We need a functioning home care scheme now.”

Along with its key priorities, Age Action also published detailed submissions it made to a number of individual government departments, which are available online at www.ageaction.ie/budget2019 ### For more information contact Corona Joyce 087 968 2449 or advocacy@ageaction.ie

 

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