James Bannon (Fine Gael)

The cost of decreasing the age of the non-contributory state pension from 66 to 65 would have been approximately €28 million to €30 million in 2006. This allows for the amount which would have been paid in the 2006 budget and the cost would not have been much higher this year. The main reason to raise the old age pension is to lift older people out of the poverty trap and make them as financially comfortable as possible in their retirement. After all, we are all heading in that direction some day. According to the latest Central Statistics Office figures released in 2005, without social transfers, the largest being State pensions, 88.1% of over 65s would be in relative poverty. Relative poverty is defined as 60% of average disposable income. To decrease the rate of pensioners at risk of poverty, a considerable increase in the old age pension is necessary. In 2005, over 65s made up 11.2% of the population but 12.1% of those were at risk of poverty.

In an era of ever-increasing costs, we are seeing an imminent increase in the prices of electricity and gas. In August, the regulator approved massive increases in gas and electricity prices based on the level of oil prices which have fallen considerably since the go-ahead was given.