Eamon Scanlon (Sligo-Leitrim, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the Bill. I welcome the increase in the State pension, something for which Fianna Fáil fought and secured. A key commitment for us in our manifesto was to increase the old-age pension by €30 over five years, and we stipulated that in the confidence and supply arrangement.

I also welcome the changes for the self-employed. Many self-employed people take risks, employ people and pay their taxes, PSRI and everything else, yet despite their best efforts sometimes businesses fail. I welcome that they are being recognised in the budget. That will improve their quality of life. Until now, such people were stranded with no support whatsoever.

I wish to pay particular attention to the State's contributory pension scheme and the current pension gap between men and women. Financial hardship in retirement has become a real prospect for many women. While much attention is given to the gender pay gap, the problem is far more pronounced at pension age, with the pension gap between men and women now standing at about 37%. Women very often take a step back in their careers to look after children, which can in turn make it more difficult to save enough for their pensions. Time taken out of the workforce to care for children is time lost paying into a pension, as well as any employer top-ups to that pension.

The past four decades have witnessed a seismic change in women's participation in the workforce, but women are still financially less well-off than men. A 2012 study by the European Institute for Gender Equality found a gap of €688 a month in pension payments between men and women. The reason for the pensions gap include the fact that women have less access to State pensions than men. Currently, only 16% of women receive the full pension. Changes to the contributory thresholds that determine how much of a State pension people receive have made the situation for women worse. Sadly, any system that relies on contributions will put women at a disadvantage.

With effect from April 2012, the number of paid contributions required to qualify for a State pension increased from 260 to 520. This has worked against many women who have spent time out of the workforce. The cuts to the State's weekly contributory pension were introduced by the former Minister for Social Production, Deputy Joan Burton, to make it more difficult for those without a full-time, long-term working history to qualify for the maximum weekly payment.

The plan was implemented despite an internal Department survey of 5,700 claimants which highlighted the likelihood that women would be disproportionately affected by the measures introduced in 2012. For a person to receive the top rate, he or she will need a yearly average of 48 paid credited contributions from 1979. This means that a generation of women are either on reduced pensions, do not have enough contributions to qualify for the full rate or get one as a qualified adult which is related to their husband's pension and is not a payment in their own right.

A new home-maker's credit was approved at the time of these changes, which seemed to off-set any potential inequality, but this was not sanctioned by the Department of Finance because of cost. The home-makers scheme, which was introduced in 1994, makes it easier for women and men who have spent a number of years outside the workforce caring for children to qualify for a contributory State pension.

One has to return to work for the home-makers scheme to be effective. According to the Department, while one is not obliged to return to work to the workforce immediately after the home-maker period ends after 20 years, if one has an insurance record gap of more than two years the credited contributions one and during the home-maker period cannot be used for pension assessment purposes until one returns to work and pays a minimum of 26 contributions.

Another issue is that the scheme only goes back to 1994, which precludes women who worked in the home prior to this from benefitting from a contributory pension. It is crucial that the promised home-maker credit is introduced and backdated to the early 1970s. The scheme is currently only backdated to 1994 and is limited to the care of children up to 12 years of age. We need to move towards a universal pension system which gives women and men equal access to a comprehensive pension guarantee. This pension must be at a payment rate that provides a decent standard of living for all. I would like to request a review of the State pension scheme which disproportionately affects women and their ability to qualify for a full State pension.

I know the exclusion of people in receipt of social welfare from being able to buy their homes under the new tenant purchase scheme is not within the remit of the Minister for Social Protection, but such a rule is very wrong. People should be given a chance to buy their house. It is unfortunate that they are excluded from so doing unless they have earned income of over €7,500, which many do not have. I want to mention the issue because it needs to be examined.

In my area, community welfare officers attended to people in towns and villages throughout the county. Unfortunately, about three years ago all of the community welfare officers were concentrated in one centre in Sligo. This means that people have to travel 30 or 40 miles to meet one, which is very difficult for single parents or those living in rural areas.

There are no trains, taxis or DART services in these areas for people trying to get to the social welfare office. They have an hour and a half window in the morning or in the afternoon, usually around midday, to do it. It is not easy for those with children in school. It certainly has not improved the service and perhaps it might be re-examined. If it was only a fortnightly visit to the local health centre or village that was required, it would make things easier for them because it causes a lot of hardship.

I welcome the increase in the numbers on the farm assist scheme and the rural social scheme. I also welcome the work done by those on community employment schemes. As politicians that are involved in local community groups trying to improve our areas, we are aware that the CE scheme has been a fantastic success in that regard. I know young and middle-aged men that are on these schemes. Quite a few of them go in every week although the scheme works on a week on, week off basis. It is hard to believe that for an extra €20 one week they will go in the next week despite the fact that they are not getting paid. They go there to maintain their mental health. They mix with people and feel they have a value. It is not a lot of money but it makes such a difference to these people's mental state. There is no doubt about it.

On the issue of those who have to retire at 65 years of age and then have to apply for jobseeker's benefit for the year until they reach pension age, it is wrong that those who have worked all their lives since they left school have to do this. There should be a system that allows them not to have to apply for jobseeker's benefit. It does not make any sense. They are retired and should get an equivalent payment until such time as they become entitled to their pension.

I accept that the Minister cannot do everything and there have been improvements, but other issues should be examined to try to improve the lives of those we represent.

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