Older people on low incomes will be among those hardest hit by measures contained in the National Recovery Plan, advocacy groups for this sector said.
Age Action noted the document published today gave no commitment to protecting the contributory or non-contributory State pension, but said it did include measures which would “hurt the poorest and most vulnerable of older people”.
The group noted welfare payments would be cut by €3 billion over the four-year period, with some €760 million in savings next year.
Other key changes which would hurt low-income pensioners included the abolition of the income tax exemption limit and tax credit of €20,325 for a single pensioner or widow.
Age Action said widows and single pensioners would be paying tax on income over €15,300 by 2014.
It also noted the introduction of a scheme of charging for essential community health services, based on a patient’s income.
The body said it was particularly worried about the impact which the increased levels of carbon tax would have on older people who were already struggling to heat their homes.
“The plans to increase the tax on fuel mean it is vital that the Government lives up its commitment to low income households and provides them with a compensation payment to cushion them against the effect of this tax,” spokesman Eamon Timmins said.
The Older and Bolder group welcomed lack of direct cuts to the State pension in the four-year plan.
But it expressed concerns about other measures, including the planned 1 per cent VAT increase in 2013 and a further 1 per cent in 2014, the introduction of water metering, the estimated “doubling” of carbon taxes, and the proposed “interim site value tax”.
The Irish Senior Citizens Parliament also expressed concern at the level at which the cut off point for public service pensioners was set.
“The level of €12,000 per year, ie €230.76 per week is the same rate as the State pension.
“When one takes account of the known imposition of additional charges for carbon taxes, property tax and water charges which older people will have to bear it is a cause for concern not only for public service pensioners but for all older people,” it said.
Chief executive Máiréad Hayes said Budget 2011 must strive to protect the State pension and other services such as health and transport.