Pearse Doherty (Donegal, Sinn Fein)
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347. To ask the Minister for Public Expenditure and Reform the estimated impact in 2021 and 2022 on fiscal space from the increase in the qualifying age for State pension recipients with reference to the Government's planned increase to the pension age to 67 from 2021; and if he will make a statement on the matter. [8682/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As per the Expenditure Report 2017, the current expenditure ceilings are published in Table 5 for 2017 to 2019. These ceilings take into account expenditure pressures in Health, Education and Social Protection arising from demographics. The amounts included in respect of this additional expenditure are consistent with the Pre-Budget position detailed in Table 1.7 of the Mid-Year Expenditure Report last year. The ceiling for Social Protection reflects an adjustment to take account of expected lower numbers on the Live Register.

The ceilings in respect of current expenditure have not been set on a Departmental basis for periods beyond 2019. Consequently, the figures used in Table 12 of the Budget 2017 Department of Finance publication for the years beyond 2019 include the aggregate overall increase of c. €0.4 billion in respect of demographic related costs for 2019, adjusted for a lower amount being available for reallocation within expenditure from Live Register savings in subsequent years.

Any savings that arise from the increase in the qualifying age for State Pension recipients in 2021 will not have an impact on the gross fiscal space but will have a positive impact on the net fiscal space as detailed in Table A7 of Budget 2017.

In estimating the likely savings of this measure, it is useful to note that this is the second phase of the legislated increase in the State pension age that was initially detailed in the National Pensions Framework in 2010. The first phase of this process occurred in 2014 when the pension age was increased to 66 with the abolition of the State Pension (Transition) payment.

In Table 2 of the Report of the Interdepartmental Group on Fuller Working Lives, work undertaken by the Department of Social Protection details the projected savings as a result of the first phase of the pension reforms in 2014. The net savings estimated were €37.7 million (a "half year" effect) for 2014 and €76.2 million for 2015. These savings take into account the projected increases in claims of working age payments, such as Jobseekers Benefit and various disability and illness payments.