Ms Eilís Ní Chaithnía:

To follow on from Ms O'Connor's point on taxation, our 2008 report, which remains worryingly relevant, referred to work done by Tim Callan in 2007 on a tax benefit model simulating and quantifying the impact of altering the tax treatment of pensioners to reduce the tax relief to the standard rate increase of State pensions. The findings included that the lowest deciles of income distribution gain and the higher deciles lose, but it would be an opportunity to substantially reduce the relative income poverty within the group that most needs it. That research suggests such a change would virtually eliminate the risk of income poverty for older people. The suggested universal pension scheme is not coming just from Social Justice Ireland and the National Women's Council. The World Bank suggested the scheme and also that administratively it would be the simplest structure with the lowest transaction costs for the public pillar. It said it avoids the disincentive to work that is inherent in means tested plans and that it helps to ensure poverty reduction objectives are met. The idea is that it would be based on residency and paid for by reducing tax relief on private pensions to the standard rate suggested.

Social Justice Ireland undertook research in 2015 and calculated that proposal around the reduction of the tax rate to the standard rate. It did a few bits and bobs around that. There was a bit around adjusting pension funds and tax-free lump sums as well. It suggested doing that would save about €710 million. It was also suggested the USP would cost €714 million. It is worthwhile to look at it if the members of the committee have not already done so. The benefit for women is that it eliminates a lot of the legacy issues for women. It removes the breadwinner model which makes women dependent on spouses for pensions, namely the qualifying adult issue. It would follow the requirement to recognise women's unpaid care contribution. It would have a neutral but positive impact on care and encourage savings over the lifetime if not means tested.