Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

In the two most recent budgets, while the primary rate of State pension payment did not change, a number of targeted measures aimed at older people mostly at risk of poverty were introduced. These included a €10 increase in the living alone allowance and increases in the rate of fuel allowance. In addition, legislation was passed to ensure that the State pension age remained at 66 years. That amounts to a cost of €221 million this year and in excess of €450 million in a full year.

Designing a system of benchmarking and indexation for State pension payments is complex, but I understand good progress has been made between officials in my Department and the Department of Public Expenditure and Reform. While the pandemic has interrupted implementation, I have asked my officials to make further progress on the issue in the coming months in advance of the budgetary process.

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