Aengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

I would welcome it if the Government addressed it properly and gave people forced at that age onto jobseeker's payments a higher rate to reflect the pension rate to which they should be entitled and to which they would have been entitled in the past.

Section 18 announces pension trustee discretionary powers. This gives board discretionary powers to pension scheme trustees which would facilitate the shrinking of occupational pension payments made to those who turn 65 after 1 January 2014. This measure is being introduced in the absence of safeguards or even a decent lead-in time to allow people to make other arrangements.

This power to reduce pension benefits is being given to all trustees, including those who preside over schemes that are not currently in deficit or which are making their way out of deficit. It is a pity this issue was not properly discussed. We probably will not have a proper discussion on the effects of this measure because of the tight timeframe for passing the Bill.

The bereavement grant offered a small assistance towards the cost of funerals for workers with a solid contributions record. It provided a mere €850 towards the crippling costs of burials. The Association of Funeral Directors has stated that the average cost of a funeral is €4,000. I know from personal experience that the figure is significantly higher in this city, even for those who are frugal in their arrangements. The director of Massey Brothers undertakers has said more than 70% of people using its services are currently supported by the grant and suggested the cost of a funeral in Dublin is as high as €10,000.

The issue of the telephone allowance is glaringly absent from this Bill. The abolition of that allowance will increase fear and isolation among older people, the mobility of whom is often limited. A large proportion of them live in rural areas and have families who emigrated. Furthermore, personal alarm pendants depend on landlines. While the telephone allowance is worth only €9.50 per month this year, it was €22.60 last year. Under this Government, two budgets in a row have taken €271 from the annual budgets of those over the age of 70 and certain people with disabilities. Given the isolation these people experience, not only in rural areas but also in the cities, and coupled with the cuts to home help services, people will be living in greater fear and isolation. Many of them cannot get out of their homes due to mobility problems. In regard to those whose children have emigrated, some use Skype to keep in contact but the Minister is taking that away from them by removing the telephone allowance.

Also absent from the Bill is a reversal of the changes to the one parent family payment despite the absence of the credible, Scandanavian-style child care that the Minister promised would be put in place. She should keep her promise that the minimum age would not be reduced until that system of child care is in place. The minimum age is due to be reduced to 10 years in 2014 and to seven years in 2015.

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