Labour will raise pension if returned to office, says Burton

Pensioners can expect an increase in the old age pension rate again in next year's budget if the Labour Party is returned to office, Tánaiste Joan Burton has said.

Ms Burton on Friday published the Social Welfare Bill, which gives effect to social welfare changes announced in the budget, such as the €3 increase in the pension, €5 increase in child benefit payments and the restoration of the Respite Care Grant, now renamed as the Carer’s Support Grant, to €1,700.

Some advocacy groups have criticised the €3 increase in weekly pension payments as insufficient but the Tánaiste defended the move.

She also said she hopes to increase the rate in future budgets, but this depends on whether it was affordable.

Ms Burton also said child benefit will remain as a universal payment and will not be means tested, since it is one of the few benefits available to self-employed people with children, such as construction workers.

Ms Burton, who said she prioritised an increase in the social welfare Christmas bonus this year, said her approach to pensions will be outlined in the Labour Party general election manifesto.

“That will be decided in the context of our manifesto but what I want to see over a period of time, is a wage led recovery in the economy, which will boost spending for people on low to middle income. We’ve seen that with the USC (cuts).

“The corresponding element of that will be to see improvements in social welfare payments, particularly for pensioners. I committed to improving the position of pensioners this time last year. I commit to doing that again this time next year if the people decide to return us to Government.”

When asked if future increases on the rate of the pension will follow the example of child benefit - which has increased over the past two budgets - Ms Burton said: “That’s what I would hope.

“I can say I haven’t signed off on it as yet. We’ll see the outturn at the end of the year. In November, we will have the returns from the self employed people into economy and we will see the final economic out-turns for 2015 and, as with last year, that will determine what the likely increase will be. But our pensioners deserve to absolutely share in any return to prosperity.

“I make no secret of the fact that our pensioners should be a public priority for this country, a social priority. During the crash a lot of them helped looked after their children and their grandchildren and helped with family finances and I think it is time that we, as a country, and certainly this Government sees it as our job to give something back.”