More older people ‘in consistent poverty’ now than after 2008 economic crash

An organisation supporting older people in Ireland has said more citizens aged 65 and over are living in consistent poverty now than after the 2008 financial crash.

In its pre-budget submission to the Department of Social Protection, Alone calls for the State pension to be increased by €10.50 a week in each of the next five budgets to help provide older people “an adequate income”.

The charity said the percentage of over 65s living in consistent poverty at present was “alarming”.

“There are a reported 635,567 over 65s in Ireland. Statistics from the Central Statistics Office show that 2.3 per cent of over 65s are in consistent poverty, meaning that they are unable to afford basic items such as a warm, waterproof coat or heat for their home,” the submission says.

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“At 2.3 per cent, there are 14,664 older people living in poverty. The consistent poverty rate nearly doubles for over 65s who live alone, at 4.1 per cent.”

Universal rate

The contributory State pension is currently €248.30 and the non-contributory pension is €237. At the current rates, older people who depend on the pension are living below the poverty line, Alone says. It recommends that a single-rate universal State pension should be paid at the contributory rate.

Alone says the pension should be pegged to a rate representing 35 per cent of average weekly earnings in the State, and should rise by 2.5 per cent annually or at the rate of inflation, whichever is greater.

“This will help to ensure that older people can receive an adequate income, secure pensions at a deliverable rate and protect pensions when average earnings drop,” the submission states.

“The State Pension should be benchmarked at €300.73. Budget 2022 should set a path towards achieving this benchmark by increasing the State pension by €10.50 (annually) over the next five years.”

Alone also wants the Telephone Support Allowance of €5 to be updated and favours an integrated Telephone and Technology Support Allowance of €7.50, which could assist older people with broadband costs.

‘Digital divide’

The organisation has also asked for an Older Person Technology Grant of €250 to be provided so older people can buy e-health devices, emergency response alarms, tablets or smart phones.

“We have seen key services, such as banks and social welfare either close their offices or move totally online and now operate from a ‘digital first’ approach,” said Alone chief executive Seán Moynihan.

“This has widened the digital divide and those without skills to use online services and technology are being left behind. Budget 2022 must reduce the digital divide.”

Other demands in the submission include setting the fuel allowance season to 32 weeks and increasing the payment by €4 per week, along with holding a review of the eligibility criteria. The charity also wants people to be entitled to a full contributory pension after 30 years of work as opposed to 40.

It is also calling for €3 million in annual funding towards a dedicated carer’s pension for long-term family carers, a commitment it says was contained in the programme for government.