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Seanad
‹ Order of Business (Resumed)

Pensions for women

Summary

Senator Gavan raises the pension penalty faced by women who left work to care for children or worked part-time, blaming 2012 rule changes and calling for reversal and a debate. Senator Buttimer briefly interjects, and Gavan argues the measure can be reversed at modest cost.

I also want to raise the issue of pensions. Thousands of women get smaller pensions because they left the workforce before 1994 to care for children. Others are taking a pension hit because they once had a summer job or worked part-time for a while. It is estimated that 23,000 women have been hit with lower payments due to changes to State pension eligibility rules in 2012 made by the then Minister for Social Protection, Deputy Joan Burton, to make it more difficult to qualify for a full pension. Of all of the cuts that the Labour Party made when it was in Government, this is probably the most shameful. Retired women lose more than €1,500 a year on average according to Age Action. This also means that women affected will not get the full €5 increase in the State pension in the budget next March. The Minister for Finance, Deputy Paschal Donohoe, has admitted that it is wrong. He called it bonkers. I would say that is probably not the right word. It was mean, sly, regressive and nasty. Here is the point.

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It can be reversed and Age Action has costed that at €60 million. Our costing in our own pre-budget submission was €70 million.

Budgets are about choices. Unfortunately, Fine Gael and Fianna Fáil chose to go for tax cuts that benefit the well-off much more than ordinary workers and left these women high and dry. The case was made much more ably by a caller to the Sean O'Rourke radio programme yesterday than I can make it, but we can all agree that this cut was wrong. If the Minister for Finance can agree that it is wrong, then let us do something about it. I call for a debate on the issue and for those in Fine Gael to recognise that it was wrong and that it is eminently doable to reverse it in this budget. It would cost €60 million to €70 million.

I wish to raise a failure in the budget relating to child care. The 7% increase to the early childhood care and education scheme, ECCE, is welcome but, unfortunately, it is unlikely to result in better wages. The real problem in the sector is that people are voting with their feet. Qualified educators, managers and providers leave the sector each week. Sinn Féin has made the case, along with SIPTU and IMPACT, for a sectoral employment order for the child care sector. In our pre-budget submission, we costed it at €40.58 million, which would have given child care workers a €1 an hour rise. A lack of political will is at fault here. Everyone here knows that child care workers are underpaid. Everyone has said so but, yet again, the Government has failed to do anything about it. The solution, a sectoral employment order, is available. Even the Minister, Deputy Katherine Zappone, said it would be welcome, but it will not happen without the funding. I call for a debate on the issue and for the Leader, as a trade unionist, to support my call for a sectoral employment order for the child care sector.

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