Auto-enrolment costs for community groups
Deputy Ward warned that pension auto-enrolment costs could become unsustainable for community organisations whose State funding is fixed. The Tánaiste supported extending pensions to workers but said implementation issues must be resolved without reducing services, and referred the matter to the responsible Minister.
I want to ask about the pension auto-enrolment scheme, particularly for community organisations. Clondalkin Drug and Alcohol Task Force estimates auto-enrolment will cost its organisation about €6,000 in 2026. If things stay as they are, that will rise to €12,000 after three years, €18,000 after six and €24,000 after nine. It is not sustainable if the funding remains the same. Other projects are in the same boat. Another organisation that contacted me said it will cost it €10,000 this year. These organisations are not businesses.
They are not able to get revenue in, increase costs or anything like that. They rely on Government funding to provide the services. They are already engaging in fundraising activities to cover funding deficits that are already there. I am not being critical of auto-enrolment. It is a really good idea and these organisations are really happy that their workers are getting pensions but unless they receive supports, they may have to cut vital services, which goes against their service level agreements. Has the Government got a solution to this issue?
Comment on this
It is a fair point and I, like the Deputy, do not want to pit workers against management because what we are all trying to do here is make sure that people who have not had pension provision before can in the future and that we end the really difficult gap between people who have pensions and do not have them. That is the ultimate aim. As schemes are rolled out, issues will have to be resolved and the Government obviously does not want to see a deviation or reduction in the level of service provision to address pay or pensions issues. I will ask the Minister, Deputy Dara Calleary, who has responsibility for auto-enrolment, to take this example the Deputy has given in relation to Clondalkin and to come back to him directly on the issue.