High earners in receipt of State pensions may face cuts, Minister says

HIGH-EARNERS in receipt of State pensions will face a cut in the budget, Minister for Social Protection Éamon Ó Cuív has indicated.

“The protection of low-paid pensioners and workers in my view would be far ahead of those who are receiving very large salaries in full-time employment and also are entitled to the State pension,” he said.

The group would not include small-scale farmers or part-time workers.

Mr Ó Cuív did not rule out an across-the-board reduction in the State pension, but said he was “concerned that pensioners are upset by loose talk that is absolutely removed from any reality”.

Mr Ó Cuív said pensioners should be protected “as far as possible” in December’s budget.

“My priorities for savings are the reduction of fraud and that those in our society who can best carry the burden, and that goes irrespective of age”.

In an interview with The Irish Times, he suggested an emerging group of younger people were in greater need of protection than some pensioners.

He said two-income families who had lost one job,who did not qualify for benefits and struggled to maintain their lifestyle because their “outgoings are predicated on an income they don’t have”, were in greater need.

“Many older people have commented to me that their main worry is their unemployed sons and daughters and not themselves.

“There are families in this country who, through unexpected unemployment, do not know how they will struggle through, how they will pay their bills and their loans or will they hold on to homes,” he said.

“Many are suffering from depression and illness caused by enforced idleness. I believe they deserve priority consideration at this time.”

Mr Ó Cuív said his “worst fears were confirmed” about the financial situation in which this group found itself when he started work in his new department.

“There are a large number of people coming in who are totally taken aback that after a year they’re not entitled to social welfare because they’re means-assessed on a partner.”

Mr Ó Cuív said it was too early to say what would be in the budget.

“As you know the Government takes the view that pensioners as far as possible should be protected, but I cannot pre-empt where I’m going to go on any issue at this moment in time.”

He called for a societal debate over the next number of months to decide where the greatest hardship was “and that’s where we should put our resources”.

He said pensioners “at the low end” had experienced a relatively small change in their standard of living. “They did lose the Christmas bonus. That was the only reduction they faced . . . but otherwise they have been untouched,” he said.

“So if I look at their income two years ago or three years ago, and social welfare pensions went up dramatically in the last 10 years in real terms, I’m talking absolute terms . . . if I take their situation now as compared to two or three years ago, they have seen a relatively small drop and what they will tell you is that that is actually a fact.

“Most pensioners are very fair-minded about this.”

Mr Ó Cuív added: “The pensioners who are, of course, at a loss are those who had been advised to buy bank shares and had a contributory pension and had put a lot of savings by and had expected to have a very comfortable retirement. They’re at a loss, at a serious loss.”