Alliance welcomes avoidance of direct cut to State Pension but four year plan will have a corrosive effect for older people

Older & Bolder welcomed the indication in the Four-Year Plan published by the Government today that the State Pension will escape a direct cut in the forthcoming Budget.  This is, Older & Bolder said, a tribute to the 40,000 people who have signed Older & Bolder’s petition to defend the State Pension over the course of a two month campaign by the alliance.

However, Older & Bolder is concerned about the impact of the many of the other measures proposed in the Government’s Plan on citizens on lower and fixed incomes, including older people.  Director Patricia Conboy stated that, while people might think that older people have not been touched in the Plan, this is not the case.  Elements of the Plan causing concern include increases in taxes and charges such as:
•         VAT increase by 1% in 2013 and a further 1 % in 2014
•         Water metering
•         Estimated doubling in carbon tax over four years
•         Interim Site Value Tax,  fixed local service contribution of €100 per annum.

Older people will also be particularly affected by the phased abolition of modest age-related income tax exemptions and credits.  The intention seems to be to bring everyone with an income of €15,300 into the tax net.  This will have a corrosive effect for older people on low, fixed incomes who are currently trying to bridge deficits in health, social care and transport services from their own limited resources. 

Older & Bolder points out that the value of the State Pension is underpinned by older people’s access to associated supports i.e. Fuel Allowance, Household Benefits Package and access to health and social care services.  Reductions in frontline Health and Social care services will pose huge challenges for older people who will find themselves struggling to address those needs from reduced personal resources. The dilemmas older people already face in these areas have been vividly described in Older & Bolder’s recently published report Feeling the Pinch: A Year On. 

Other measures proposed in the Government’s Four-Year Plan will, Patricia Conboy said, add significantly to the pressures older people experience on a daily basis.For example, the Plan points to the possible means-testing of community supports for older people and a phased increase in qualifying age for State Pension.