Regina Doherty (Meath East, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 53 and 91 together. A Roadmap for Pensions Reform 2018-2023, published last year, commits the Government to examine and develop proposals to set a formal benchmark target of 34% of earnings for the State pension (contributory) and to institute a process whereby future changes in pension rates of payment are explicitly linked to changes in consumer prices and average wages. The Department is currently considering options to implement this commitment, having examined previous studies on benchmarking and indexation, international experiences and examination of a range of potential benchmarks and indices. It is worthy of note that the current rates of payment already closely mirror the benchmark-linked process in previous reports including those proposed by the Social Welfare Benchmarking and Indexation Group in 2001 which is usually relied on by advocacy and other groups.

I acknowledge Dr. Seán Healy, the European Anti Poverty Network, EAPN, the National Childhood Network and the Children's Rights Alliance. They are all genuinely in favour of pursuing the conversation on this and trying to come up with an algorithm of what we can agree that benchmarking should be against.

In terms of the wider application of the indexation of social welfare payments generally, section 19 of the Social Welfare, Pensions and Civil Registration Act 2018 provides that I, as Minister, will arrange to consult with stakeholders on examining ways in which social welfare rates are increased with the aim of ensuring in law the adequacy for all recipients. I am doing that. I met with them last week and we arranged to sit down in the next few weeks to start that consultative process. It is really important because if we decide to do something collectively, as a House, with regard to benchmarking, I cannot do it without the collective will of the people in the organisations that represent the people of most need in this country. We all have to agree on the algorithm and that it is going to be sustainable. We also have to ensure there will not be cuts in the future, such as those inflicted on this Department in recent years.

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