Michael Lowry (Tipperary, Independent) | Oireachtas source

I compliment the Minister on negotiating and securing a substantial social welfare package. Those most in need through the budget are supported and assisted financially. There will never be a budget that satisfies the wants and needs of everyone, particularly when it comes to social welfare. Budget 2024 was no exception. Due to the surge in the cost of living, those who are solely dependent on social welfare, including our elderly, will continue to grapple with rising costs.

The once-off payments were widely welcomed and greatly appreciated by those who benefit from them. Similarly, the increase in weekly income thresholds for the working family payments will result in additional families becoming eligible for this much-needed support. One of the more progressive announcements that did not receive the recognition it deserved was the payment of child benefit to 18-year-olds who are still in full-time education. The vast majority of these 18-year-olds are at leaving certificate level, with parents facing the increased financial demands that this school year brings, in addition to preparing for the next stage of their son or daughter's life.

At first glance, the changes to the State pension seem like a positive move that affords the option of working longer with the aim of availing of an increased State pension. The flexibility this offers workers is welcome. It gives them control over their futures. However, people want a clearer picture of what the financial benefits will be. Will adding four years to their working life make a worthwhile difference to their future? Is it financially attractive enough to encourage them to continue working? Considering that a sizable majority of people work to live as opposed to live to work, reaching the current established retirement age in employment is their goal. Suggesting that they work longer to increase their State pension is unlikely to incentivise the average worker to continue working, unless the end reward is attractive. Reports have indicated that based on the current State pension of €253.30 per week, someone who works until they are 70 would then get approximately €315 per week. While an increase of €62 per week seems lucrative today, how will it look in four years? Taking the inevitable cost-of-living increases in that period into account, can workers be guaranteed that staying in work will be to their advantage?

Another concern lies with the fact that some occupations are more amenable to extension than others. Comparing the working conditions of those who work indoors in sedentary jobs with those who have outdoor jobs that require a high level of physical work creates an unlevel playing pitch for workers. The latter will understandably be less inclined or perhaps physically unable to continue working beyond 66. This could exclude them from availing of an enhanced pension scheme due to the nature of their work or their physical capabilities. While this reform is significantly preferable to a blanket increase in the age at which a person can qualify for the State pension, encouraging people to work beyond the age of 66 would need to be made attractive to the majority of workers, particularly to those who work in strenuous or high-pressure jobs.

By far the most proactive and long overdue element of the Bill is the inclusion of long-term carers for contributory State pensions. Aside from its long-term financial benefit for carers, it also gives well-deserved recognition to the work that these carers have carried out for the two decades required to qualify. The work of long-term family carers all too often goes unnoticed, yet what they do every single day is done with dedication and love and without any need for thanks and praise.

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