Pensions linked to average earnings
O’Connell asked why pensions had not kept pace with average earnings. Haughey cited real increases and the Government’s cost-of-living commitment, saying an earnings link was under consideration in the Green Paper and could help eliminate poverty, though it was not universally accepted.
asked the Minister for Social Welfare if his attention has been drawn to the failure of social welfare pensions to keep pace with increases in average industrial earnings and if he will make a statement on the matter.
Comment on this
The Government are committed to maintaining the living standards of social welfare recipients and to increasing the level of payments at least in line with movements in the cost of living. The increase in pension rates since the Government took office have brought about real increases in pensioners' incomes.
The question of using a link with average earnings rather than with the consumer price index or some other form of index for the adjustment of pensions was among the matters raised in the Green paper "A National Income-Related Pension Scheme". It will be one of the items for consideration in the context of framing proposals in the pensions area.
Comment on this
Would the Minister not agree that it would be an effective way of eliminating poverty?