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

I will speak to both amendments, but I do not propose to accept them. It is important to note that the State pension age has never been 65 and there has been no entitlement to a contributory State pension at 65. The Pensions Commission concluded its detailed analysis of the State pension system in late 2020 and recommended increasing the State pension age rather than decreasing it. The Government decided not to increase the State pension age, but rather to leave it at 66. I do not believe that a further report on State pension age is warranted at this time. Reducing the State pension age to 65 would increase pension-related expenditure significantly. An estimate of the cost of introducing State pension payments at the age of 65 based on current pension rates is €415 million for one year only. This does not include proposed increases. Given current demographic changes and projections, this additional annual expenditure would obviously increase year on year.

In February 2021, I introduced the benefit payment for 65-year-olds. The benefit payment does not require a person to sign on, engage in activation measures, or be available for and genuinely seeking work. There were a number of conditions. They have all been taken out now. The payment was designed to bridge the gap for people who retire from employment or self-employment at 65 years of age, but do not qualify for the State pension until 66. Following the pensions report, I secured Government approval to examine options to provide early access to a pension for a person with a long work history who cannot for health reasons remain in their current occupation. In the meantime, people under the age of 66 who cannot work for health reasons can apply for invalidity pension and disability allowance. I do not have to tell the Senator this, but I will anyway. Where Sinn Féin is in power in Northern Ireland, it voted for the pension age to go up. It is currently at 66, and by 2026 it will go up to 67. By 2046, it will go up to age 68.

Amendment No. 12 relates to establishing a social welfare adequacy commission. The Vincentian Minimum Essential Standard of Living Research Centre is funded by my Department, and we pay for these reports, which are excellent. They provide an analysis of the different levels of income needed for a wide range of household types. This analysis is published every year and I do not propose to duplicate or replace the work of the research centre. The MESL research also highlights issues that may be better solved with greater access to services rather than increases in income. In this regard, having access to secondary benefits such as medical cards, school meals and school books can result in significant reductions in the minimum income standards needed by households. The full package of permanent and temporary welfare changes introduced under budget 2025 is progressive. It will have greater positive impact for the lower income quintiles, and I am happy with the existing extensive engagement I have with the stakeholders. I have a forum every year. I meet with them and listen to them, and it forms part of our budget proposals later in the year.