Impact of Budget 2013 on Older People

However, many of the cuts and charges in this budget will make it more challenging to grow old safely and healthily in our own homes. 

Health Impact:

Unfortunately, as a result of changes in Budget 2013 the cost of being sick and older in Ireland has now increased. 

Medical Card Eligibility Changes for those over 70

Prior to this budget a single person over 70 with a gross income of up to €700 per week qualified for a medical card. While a couple over 70 with a gross income of up to €1,400 per week would also qualify. 

Budget 2013 lowers the qualifying threshold for medical card eligibility to those with a gross income of up to €600 per week for a single person and €1,200 for a couple. Individuals with a gross income between €600 and €700 will lose the medical card and will be given a GP visit card instead. People in this scenario who are ill may now have to pay up to €144 per month for drugs. Unlike the medical card, the GP cards does not offer the same access to a range of vital supports including public health nursing, social work services, community care services and in-patient public hospital services like x-rays and blood tests.

Medical Card Assessment: 

We are told that the assessment criteria for how people qualify for medical cards are set to change and the full details will not be announced until 2013. Given the importance of the medical card to those who rely on them Older & Bolder will be watching vigilantly to ensure that any changes to the means-test rules are fair and equitable.

Prescription Charge:

For those with medical cards, prescription charges have increased by 300% (from 50 cent per item to €1.50 per item) and the monthly cap has increased from €10 to €19.50. These measures will increase the cost of being sick and older in Ireland.

Drugs Payment Scheme:  

For those not entitled to the Medical Card their maximum monthly drug costs have increased from €132 to €144 per month due to changes to The Drug Payments Scheme. This will have the greatest impact on those in poor health reliant on expensive medication. 

Nursing Home Support Scheme:

The cost of nursing home care under the Fair Deal scheme (Nursing Home Support Scheme) will become more expensive. Currently, nursing home residents pay no more than 15% of the value of their assets over three years. This will increase to 22.5%. This will have the greatest impact for those whose ability to manage well at home is diminishing and are considering alternative living arrangements. 

Respite Care Grant:

Many families with caring responsibilities will be hit by a reduction in the respite care grant from €1700 to €1375, a cut of €325. This means that carers will get significantly less respite from their caring responsibilities in 2013.

Economic Impact: 

Older people on lower and middle incomes have taken a big economic hit in Budget 2013. In addition to the increased costs associated with poor health many of the new charges are regressive in their design as they will have a disproportionate impact on those with the lowest income. 

Property Tax:

Homeowners will be liable for a new property tax of 0.18% averaging between €300 and €500 per annum. There will be no property tax waivers or exemptions for people on low incomes or with disabilities . No rebates or reductions, no discounts or assistance. Rather, any single person with an income of €15,000 or lower or a couple with €25,000 or lower can defer payment until the house is sold or transferred. Deferral will also incur a 4% annual interest rate. Those with incomes over these thresholds cannot choose to defer payment. This property tax will replace the €100 household charge and will take effect from July 1st 2013. Read more about our concerns about the Property Tax as it affects older people. 

Telephone and Electricity allowance:

Telephone and Electricity allowance has been reduced by an average of €11 and €5 per month respectively with an estimated average monthly loss of €15 (€180 per year). These are Department of Social Protection estimates, the impact of the cuts may be greater or less depending on which electricity package you receive. 

Motor Tax and VRT

The increase on motor tax and VRT will also make it harder for those on a tight budget to afford to retain a car for weekly and emergency use. Many older people are dependent on a car to manage their health and social wellbeing. 

Universal Social Charge

Prior to this budget anyone who held a full medical card or was aged 70 years or older paid 4% on the Universal Social Charge (USC). A threshold of €60,000 aggregate income has now been introduced. Those who are aged 70 years and older or who have a full medical card and are over the threshold will have to pay the USC at the higher rate of 7%. 

Carbon Tax

While the Fuel Allowance Season was not cut further this year, the introduction of a Carbon Tax on Coal and Turf will increase the cost of heating homes for many older people. 

Post Budget  

The full impact of Budget 2013 will not be clear until the HSE service plan is worked out in detail. Vigilance is required, last year it took some months for the cuts to home help to become apparent. Throughout the New Year Older & Bolder will continue to monitor how these measures impact on our ability to age well at home.