State to increase pension to at least €200

The Government is to give a double payment to welfare recipients this Christmas, and will raise the State pension to a minimum of €200 a week, it was confirmed at the weekend.

However, while the social welfare bonus has been broadly welcomed, Age Action Ireland said a €200-a-week pension would still leave pensioners under the poverty line.

Details of the pension increase were announced by Taoiseach Bertie Ahern in his ardfheis speech when he confirmed the 2002 general election commitment to set a minimum pension of €200 would be met in the lifetime of this Government. These remarks were taken to mean the increase would be included in the forthcoming budget.

However, Age Action Ireland immediately urged the Taoiseach to go beyond this commitment, saying the Cori Socio-Economic Review 2006 put the poverty line at €203.55 - €3.55 more than the Taoiseach said would be paid.

The non-contributory pension is currently €182 per week and the contributory pension is €193.30.

In its pre-budget submission, Age Action Ireland said "at the very least, the State non-contributory pension must rise to €206 - an increase of €24, with pro-rata increases in the contributory State pension".

Age Action spokesman Éamon Timmins told The Irish Times "significantly increasing the State pension is the single most-effective way of tackling this poverty. Mr Ahern stressed concern for the elderly was at the core of Fianna Fáil's principles.

"We are urging him now to demonstrate the Government's response to this concern by increasing the state pension significantly above €200."

He called on the Government to set a target of bringing pensions up to 50 per cent of the average industrial wage by 2016.

Announcing details of the bonus welfare payment which will benefit more then 1.2 million recipients, Minister for Social Affairs Séamus Brennan said the weekly entitlements and Christmas bonus were for many "a financial lifeline". He said the time of year was stressful and financially very demanding.

The decision, recently approved by Cabinet, will benefit 855,000 welfare recipients and an estimated 394,000 dependants at a total cost of €157 million. The bonus is due to be paid in the first week in December.

"This year alone, my department is spending nearly €14 billion - or almost €1 for every €3 of taxpayers' money that the State will spend - on entitlements, supports and services. That is double what was being spent no more than four years ago." The bonus is subject to a minimum payment of €30.

The decision to pay a full week's entitlement as a bonus was welcomed by Society of the St Vincent de Paul spokesman John Monaghan. "The greatest levels of poverty are experienced by low-income families with children and that often means single parents on welfare," he said.