Dáil debates

Wednesday, 7 December 2016

Pension Equality and Fairness: Motion [Private Members]

 

5:15 pm

Photo of Denise MitchellDenise Mitchell (Dublin Bay North, Sinn Fein) | Oireachtas source

Sinn Féin has introduced the motion because of the Government's failure to act on a gross and blatant pension inequality which will affect a growing number of people every year. Appallingly, those most affected are predominately women.

When changes to pension bands and rates were introduced in 2012, studies were conducted of their effects. The worst aspect is that it was known at the time that they would primarily affect women. Despite this, the changes were pushed through. It is horrifying that, as a result of the way averaging works, women who left the workforce to care for children or elderly relatives are being cynically penalised on retirement by the Government.

The homemaker's scheme only extends to years spent as a homemaker after 1994. This means, for example, that thousands of women affected by the marriage bar are excluded under the scheme. We must remember that they were forced from the workplace. The scheme leaves an entire generation of women to suffer the current cuts. This generation took care of their children in the 1970s and 1980s. On finally reaching retirement, they are being told by the State that their generation deserves a lower standard of living because of the pension changes introduced in 2012 which remain in place under the Government.

What we have now are shocking cuts of up to €1,400 in pensioners' payments at a time of cost of living increases caused by rising fuel and insurance costs. What does the €5 increase in the pension introduced in the recent budget achieve for the people concerned? It is a pitiful, cold comfort. Instead of the flat rate, across the board rise introduced in the budget, the Government could have addressed the specific gross inequalities in the pension system. The motion seeks to have these inequalities addressed. If, as may be argued, the logic for not doing so is that it would have an impact on the Social Insurance Fund, why have women been predominantly selected to suffer from these ruthless cuts?

Some people will have their payments cut by €30 per week. Generally, women remain at a disadvantage when they reach the age of retirement. Many women are in part-time or lower paid employment and generally less likely to earn as much as men, with only 16% of women receiving a full State contributory pension according to the National Women’s Council of Ireland.

Despite Government commitments to close the gender gap, it has widened. The European Institute for Gender Equality found a 37% gender gap in pensions in Ireland. It is disgraceful that action has not been taken to address this issue and the Government has not undertaken real pension reform. While the words spoken by Deputies in the House may well be forgotten over time, the action we take and the ways in which we improve people's lives will not be forgotten.

Age Action Ireland and the National Women’s Council of Ireland have urged Deputies to support the motion which asks us to recognise a generation of mainly women whom we all represent. The Minister must reverse an inequality that will continue to grow, provide an equal pension for women and state clearly to the generation in question that they will no longer be penalised. He must bring this generation of women in from the cold. He will be remembered by those who are suffering and those who will suffer in the future if he fails to act now.

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