Seanad debates

Tuesday, 6 December 2016

Social Welfare Bill 2016: Committee Stage

 

2:30 pm

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

First, I thank the Minister for taking on board the proposal in respect of five years. It is constructive and it will make a difference to people.I understand that the Minister indicated at the Oireachtas joint committee that he intends to look at a wider level at the contributions and the contribution system. I encourage the Minister to take this issue on board and to look to it. While 520 is the desired contribution level for a full pension, the fact is that many people are on reduced pension rates. It would be significant to allow this for people.

No doubt the point will come up in later amendments, but we know that at the moment two thirds of those on the full pension are men while one third are women. Moreover, we know that women are twice as likely to be on the two lowest tiers of the reduced rate contributory pension. If this measure were changed, there could be a route forward. There could be an information campaign to encourage people. I am looking to allow women in particular to be able to move from the lowest two tiers of the contributory pension. This is an interest of mine in terms of pensions. Women are twice as likely as men to be on those lowest two reduced rate tiers. This is important in terms of economic independence. We are not simply discussing income. It is a key concern in the sense of economic independence of women. Later we will come to the question of the gender pension gap. This issue may merit further review. I thank the Minister for taking on the point about five years.

I do not have an amendment relating to employers PRSI but it will come through. This should be examined. Last week the Minister spoke about other peoples' money. At the moment we have the family income supplement, the back-to-work family dividend and many other in-work payments as well as the housing assistance payment. The many payments we have currently going to the working poor effectively amount to other people's money. Those in work but also in poverty are being supported, rightly, by the Department. I believe those payments are right. A greater demand is being placed on people. There is a question for employers in this regard. I know the Minister has spoken about raising wages as part of that, and rightly so. As part of the review we might also consider the question of whether employer's PRSI should be examined again and strengthened.

Comments

No comments

Log in or join to post a public comment.