Pension rise 'insufficient' - lobby group

Pension increases announced in today's Budget are not enough to insulate many older people from rising food and fuel prices, …

Pension increases announced in today's Budget are not enough to insulate many older people from rising food and fuel prices, the advocacy body Age Action said.

The organisation said the rises represent increases of 6 per cent and 6.7 per cent at a time when inflation is heading towards 5 per cent.

"When inflation is taken into account, pensioners have only being given an extra two or three euro per week," Age Action chief executive Robin Webster said.

"The price of milk, flour, butter and home heating oil have all jumped in recent months, making life increasingly difficult for those who are dependent solely on the State pension to keep body and soul together. Currently more than half of Ireland's pensioners depend solely on the State pension for their income."

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The Programme for Government contains a commitment that the State pension will be increased to at least €300 by 2012, Mr Webster said.

"That could equate to a €20 increase each year for the five years. On that basis today's increase means the government is falling behind. Unfortunately, many of the people we represent are struggling now. Promised payments in 2012 mean little to them."

Age Action said it was also concerned that the fuel allowance was not increased, although the period for which it is payable was extended by a week in April.