Michael Healy-Rae (Kerry South, Independent)
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Question 289: To ask the Minister for Social Protection the position regarding an application for back to education allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [23601/11]

Joan Burton (Dublin West, Labour)
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The person concerned applied for Back to Education Allowance at the start of August 2011. The application is currently with a Local Officer for decision and this will issue as soon as possible.

Eoghan Murphy (Dublin South East, Fine Gael)
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Question 290: To ask the Minister for Social Protection the number of people who are estimated to begin drawing down additional social welfare payments as a gap solution between reaching retirement at age 65 years and receiving the State pension at age 66 years; the cost of same to the Exchequer. [23721/11]

Joan Burton (Dublin West, Labour)
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State pension (transition) (SPT) is currently paid to people aged 65 who have a minimum yearly average of 24 social insurance contributions and who have retired from work. Currently it ceases at age 66 when the claimant transfers to State pension (contributory) (SPC).

In 2010, there was an average of 8,955 recipients of State pension (transition) with expenditure of €108 million. This compares to 273,005 SPC recipients at a cost of €3.45 billion. Less than 25 per cent of the SPT customers were in employment at the time of claim while 44 per cent were on a social welfare payment prior to receiving SPT. A further 25 per cent were retired from work at the time of claim.

This means, based on recipients in 2010, that approximately 2,200 customers may be impacted (for one year) by the abolition of SPT. They may be in a position to remain in employment or qualify for another social welfare payment. They may (the following year) be able to qualify for SPC at age 66.

As announced in the National Pensions Framework, State pension age will be increased gradually to 68 years. This will begin in 2014 with the standardisation of State pension age at 66. State pension age will be increased to 67 years in 2021 and to 68 in 2028. It is worth noting that, until the early 1970s, the qualifying age for State pension (contributory) was 70 years of age. By gradually increasing the qualifying age for State pension, people will be further encouraged to remain in employment beyond 65 years of age.

The Quarterly National Household Survey Q4 2010 showed that the numbers currently at work drop dramatically at 65 years of age. While 77.2 per cent of people aged 45-54 years are in employment, this drops to 64.3 per cent for 55-64 year-olds and to just 8.7 per cent for people aged 65 years or older. It is clear, therefore, that the challenges facing the Irish pension system are significant. Increases in life expectancy mean that more people are living to pension age and living longer in retirement. While this is to be welcomed, this has obvious and significant implications in relation to the future costs of State pension provision. The fundamental principle that people need to participate in the workforce for longer needs to be emphasised and they need to contribute more towards their pensions if they are to achieve the income they expect or would like to have in retirement.