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Winter Fuel Payments for pensioners on 52k per year, Is Our welfare system out of touch?

2

Comments

  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    Upskilling, qualifications etc are a route out of low pay but not all will be able to take it.

    There will always be those whose work is undervalued.

    Even though we have full employment there are still too many on minimum wage.



  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    Could you post the source of 'too many on minimum wage'. How many are too many? Is it any?

    There are many jobs where the minimum wage is too much, but they get the minimum which is OK. Some just require the person to be present and not actually to do anything.

    I assume new workers start on minimum and as they get more expertise, their pay would progress.



  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    About 150,000.

    There are more in informal employment in family situations.

    The trouble is that it's not enough to live on.

    As a stepping stone for younger people it may have some use but a living wage is better for adults.

    (I'm conscious that apart from how erratic contributions can effect pension eligibility we may be going off topic)



  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    So no source of the 150,000.

    The minimum wage is an hourly rate, so you work more hours and you get more to take home.

    Family arrangements are a private matter within the family. Afterall, some people choose to stay at home to do home duties and look after children - do school runs, prepare food, shop, etc, and do not get any payment let alone a minimum wage. But at least they might qualify for the Winter Fuel allowance.



  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    It's in this link 137,500.

    That's people self reporting so it's easily another 12,500 in informal situations.



  • Registered Users, Registered Users 2 Posts: 5,897 ✭✭✭Charles Babbage


    Most European countries have free health care and several countries have pensions that are at least as high in PPP terms.

    The situation is decent, but not out of all proportion to European countries.



  • Registered Users, Registered Users 2 Posts: 1,933 ✭✭✭tesla_newbie


    Spoiling pensioners has always been popular with the vast majority of the population so governments have nothing to loose by doing it



  • Registered Users, Registered Users 2 Posts: 22,217 ✭✭✭✭ELM327


    I think there is a lot of DSP/Welfare wasted money and bloat in this country but I think pensioners are the last group I would target, along with carers, for cuts.



  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    Whether they are spoiled or not is debatable.

    Most people who are working now hope to be pensioners one day.

    Therefore they have a vested interest in having good pensions.

    People who are pensioners now also have a vested interest.

    Anyone who has elderly relations wants them to have their best life.

    Why would any politician go against odds like that and who would want them to ?



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  • Registered Users, Registered Users 2 Posts: 1,933 ✭✭✭tesla_newbie


    It’s about the perception that all pensioners are poverty stricken, most aren’t and lots are well off and shouldn’t have freebies heaped upon them



  • Registered Users, Registered Users 2 Posts: 6,104 ✭✭✭Trigger Happy


    If you start changing the rules now and effectively punishing those that have pension income (beyond the basic old age pension) then you would discourage those currently working from making any provisions for their own old age.



  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    Nobody thinks that all pensioners are poverty stricken.

    Those who are well off pay income tax.



  • Registered Users, Registered Users 2 Posts: 1,933 ✭✭✭tesla_newbie


    The NGO ,s who represent pensioners invariably portray pensioners as being on the margins , this creates a public perception



  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    Some pensioners are on the margins just like there are people on the margins in all population segments.

    Organisations like Age Action and Alone provide services and advocacy for those older people.



  • Registered Users, Registered Users 2 Posts: 7,819 ✭✭✭Fann Linn


    Unemployment rates are currently 3/3.5% I believe. Very few 30 year olds and other age groups are actively dodging work excluding a certain ethic minority.



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  • Registered Users, Registered Users 2 Posts: 3,968 ✭✭✭BlueSkyDreams


    52k a year isnt much more than the average salary in ireland.

    Average salary is about 45k.

    Considering thats a single person's salary, a couple that are each on an average salary are bringing in 90k per year.

    Almost double your "wealthy" pensioners income.



  • Registered Users, Registered Users 2 Posts: 20,225 ✭✭✭✭Donald Trump



    Take it up with the person who invented the scenario. I was only responding to that.



  • Registered Users, Registered Users 2 Posts: 13,729 ✭✭✭✭Geuze



    Other than the 100 ED fee, hosp care is tax-financed in Ireland, no other fees.


    GP fees exist in several EU countries, for example 26 euro in FR.






  • Registered Users, Registered Users 2 Posts: 35,492 ✭✭✭✭Hotblack Desiato


    That's meaningless waffle and always has been, it's neither created a right for stay-at-home mothers to receive a wage/allowance, nor did it prevent women in many jobs from being sacked upon marriage (that only ended in 1973 due to EEC law).

    Scrap the cap!



  • Registered Users, Registered Users 2 Posts: 35,492 ✭✭✭✭Hotblack Desiato


    No, it's not the pensioners who are the problem. It's not their fault that successive governments have for decades regarded buying pensioner votes as far more important than tackling child poverty.

    Scrap the cap!



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  • Registered Users, Registered Users 2 Posts: 5,897 ✭✭✭Charles Babbage


    What evidence is there for this statement? Have pensions gone up more than childrens allowance?

    Pensions have made their contribution and should get their pensions. People who have children should look after them.



  • Registered Users, Registered Users 2 Posts: 9,962 ✭✭✭billyhead


    Has the means test for over 70s for the fuel allowance changed in the budget? I can see it has online but I thought I heard something about it on the radio. My folks failed the means test by 20 euro prior to the budget.



  • Registered Users, Registered Users 2 Posts: 35,492 ✭✭✭✭Hotblack Desiato


    Children who grow up in poverty are more likely to end up in poverty their entire life.

    https://www.oecd.org/wise/The-economic-costs-of-childhood-socio-economic-disadvantage-Policy-Insights-November-2022.pdf

    On average across European OECD countries, working-age adults who experienced socio-economic disadvantage in childhood are about 3-6 percentage points less likely to be employed, earn about 20% less, and report worse health (equivalent to around two-week’s full health per year) than adults with more favourable childhoods.

    Coulda, woulda, shoulda isn't an excuse for the government to look the other way when parents cannot or do not look after their kids properly.

    Scrap the cap!



  • Registered Users, Registered Users 2 Posts: 5,897 ✭✭✭Charles Babbage


    Looking after children is indeed more important than the usual priority for tax cuts, but not for robbing pensioners who had done their bit.



  • Registered Users, Registered Users 2 Posts: 3,590 ✭✭✭Hoboo


    I think the children's allowance is far more out of touch, I have one friend with 4 kids who uses it to buy shares in the company he works for every month. I have no kids because I couldn't afford one.



  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    The children's allowance should be taxable by income tax. It could then be raised so that those not paying tax get more, lifting those affected children out of poverty.

    Increasing the monthly amount by 50% but taxing it would affect those on the highest rate slightly, but affecting the poorest families the most.

    Simple to implement, and cheaper than a separate means test.



  • Registered Users, Registered Users 2 Posts: 9,152 ✭✭✭893bet


    Easy to implement in a perfect world with married working parents.

    Thats a lot less common moreso and would be a night mare to administer.



  • Registered Users, Registered Users 2 Posts: 5,897 ✭✭✭Charles Babbage


    Also if children's allowance is taxable then each child should presumably get a tax credit.

    Child poverty is also influenced by initiatives such a school meals, which are welcome development.



  • Registered Users, Registered Users 2 Posts: 35,492 ✭✭✭✭Hotblack Desiato


    It's not the child's income it's the parent's.

    Scrap the cap!



  • Registered Users, Registered Users 2 Posts: 3,968 ✭✭✭BlueSkyDreams


    Nevermind the pensioners, Unemployed folks in Dublin with houses paid for them by the council are better off than the average worker.

    Their equivalent rental income plus unemployent benefits equates to a Gross salary of about 50k, assuming roughly 2.2k a month in rent handouts from the council.

    Av salary for a fulltime worker is only about 45k.

    The welfare system here is very generous. But not just to pensioners.



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  • Registered Users, Registered Users 2 Posts: 26,001 ✭✭✭✭zell12


    Only 9% of those entitled want free GP visits, saving ~€50 each time

    Dr Tadhg Crowley, was asked his views on why just under 39k people out of a possible 430k have so far availed of a GP visit card after the easing of means testing for those on a median income. “People don’t like to apply for something that says they are poor,” he said.​



  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    Means tests are not easy because they require applicants to reveal a lot of private or sensitive information about themselves and their household. Also, the criteria differs for the various schemes. For example, the medical card is based on net income for those under 70 years old, but gross income for those over 70 - why? Also savings are treated differently to other schemes.

    If the applicant is doubtful they will qualify, I would think it causes them not to bother applying. Better not to apply if in doubt than go to the bother of gathering all the information and discover they fail to qualify.



  • Registered Users, Registered Users 2 Posts: 1,947 ✭✭✭Jizique


    Supporting a policy of the UK tory government.…

    Not sure why you think this will benefit children -



  • Registered Users, Registered Users 2 Posts: 15,582 ✭✭✭✭elperello


    Could part of the answer be the improvement in general health of over 70's ?

    Maybe people who are not experiencing costly health care are less likely to bother applying for a card.



  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    GP card is not means tested for over-70s. It is the medical card that is means tested for over 70s.



  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    If the children's allowance was, say €100 (just to make sums easy), then increasing the allowance to €170 but taxable, those on low tax would keep most of it, but those on 40% tax would still get €100.

    So poor people get an increase of up to €70 extra, but high taxpayer still gets €100



  • Registered Users, Registered Users 2 Posts: 35,492 ✭✭✭✭Hotblack Desiato


    That's far too sensible an idea to ever get implemented.

    Instead we'll ramp up the giveaways to well-off pensioners, because pensioners on 70k+ are 'poor'.

    Scrap the cap!



  • Registered Users, Registered Users 2 Posts: 7,104 ✭✭✭amacca


    Tend to agree with poster above…seems like a sensible idea! Which is why it wont be implemented unless the powers that be are forced into it!



  • Registered Users, Registered Users 2 Posts: 5,559 ✭✭✭Clo-Clo


    So now we are trying to cancel benefits on pensioners 🙄 who in reality will not be able to work

    Why? well the people who are young and fit for work want more money

    Only in Ireland today would you see this sort of madness



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  • Moderators, Sports Moderators Posts: 27,270 Mod ✭✭✭✭Podge_irl


    The entire question was around cancelling benefits on pensioners who have high incomes.

    Also today's young people are spending far, far more of their money on pensioners then those pensioners ever did for anyone else so it's a perfectly fair criticism. It is also one that is inevitably going to become more and more prevalent as more and more wealth is concentrated among a larger and larger non-working population.



  • Registered Users, Registered Users 2 Posts: 3,016 ✭✭✭cute geoge


    Surely the pensioners with contribitory state pensions deserve to draw them ,what about the influx of oap from Ukraine and the parents of refugees who arrive here ,clog up our hospitals ,qualify for medical cards and qualify for state pension while never working here for even 1 day in their lives maybe point the finger at them



  • Moderators, Sports Moderators Posts: 27,270 Mod ✭✭✭✭Podge_irl


    They are legally allowed draw them down yes. They are drawing out far more than they ever put in though (not that it is that relevant, as it is a current expenditure). You can decide for yourself who "deserves" what in your judgement.



  • Registered Users, Registered Users 2 Posts: 1,873 ✭✭✭mrslancaster


    Pensioners who contributed all their working lives and rely on the state contributory pension receive 277pw, while someone who never worked and never paid into the SW pot will receive 266pw. I know that cohort also covers citizens who cannot work through disability, but it is a very small difference in the amount for those who actually paid for their pension.

    Also, workers will likely have paid for their own home, gp, medicines, etc etc. throughout their working life, while a non-worker would have received those items from the state in addition to other supports that are not available to most workers.

    People seem to forget that a state contributory pension has been paid into (for many years) by those receiving it.

    So I do not begrudge my taxes going to support a citizen who has worked and contributed to the public purse over several decades. Whether that is providing a GP card for over 70's, or help to heat their home if they meet the qualifying tests, older age citizens should be supported. They are the people who stayed here through the recessions and tough times when the country was broke, raised families, worked and paid high taxes.

    Post edited by mrslancaster on


  • Registered Users, Registered Users 2 Posts: 5,559 ✭✭✭Clo-Clo


    DO you have anything to back that up? like a euro years ago is probably now similar to what a 5 euro is worth. So saying more is based on what?

    The minimum wage now is €12.70? if you earned that 40 years ago you would be one of the higest earners in Ireland.

    Maybe you could explain what you mean when you say "Also today's young people are spending far, far more of their money?



  • Registered Users, Registered Users 2 Posts: 35,492 ✭✭✭✭Hotblack Desiato


    This discussion is not about those receiving the contributory OAP, but those receiving the contributory OAP plus a substantial occupational / private pension on top.

    They're a lot richer than most working people, given advantageous tax treatments, non-means-tested GP cards, no kids to pay for, and no rent or mortgage (in almost all cases).

    Scrap the cap!



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  • Moderators, Science, Health & Environment Moderators Posts: 19,864 Mod ✭✭✭✭Sam Russell


    This sounds like begrudgery to me.

    There are means test all over the social welfare system, and some are harsh and some are lenient.

    For example, child allowance is paid for all qualifying children without any means test and is not subject to income tax. Whereas fuel allowance is means tested and is a gateway to other benefits.

    But that is the way it is, and it is the Gov that sets the rules.



  • Registered Users, Registered Users 2 Posts: 12,021 ✭✭✭✭anewme


    stop bashing pensioners who saved for their own retirement and paid hundreds of thousands of tax in their lifetime.

    Save your complaints for freeloaders



  • Registered Users, Registered Users 2 Posts: 3,260 ✭✭✭Kaisr Sose


    Is it not fair to say they already paid for their kids, and went through periods of high interest rates on mortages pethaps paid a top rate of tax if 65%?

    All that time they prioritised paying home loans instead of going on expensive holidays, had no fancy designer clothes, no new cars every few years and lived in houses that were not fully furnished from the start because they could not afford to furnish them.

    I say all this because that's what my parents did and I have no problem with others like them having a good retirement with no money worries.

    People coming behind them are far less prudent or savvy with money, and get much more from the state than they did and pay much lower rates of tax. Still, they look to retirees with high incomes (many of which still pay tax) and say they have it too good and should make do with less non means tested state benefits like free GP etc. To bring this back to opening sentence, that does not seem fair...



  • Registered Users, Registered Users 2 Posts: 5,559 ✭✭✭Clo-Clo


    I think you will find the freeloaders are the ones bashing the pensioners



  • Registered Users, Registered Users 2 Posts: 761 ✭✭✭GSBellew


    Those people paid into a private pension, good for them, they also obviously earned quite a bit to be able to amass such a private pension, wouldn't you agree? yes, great, now that we agree on that we can also agree that they would have also paid a fair lump in taxation through PAYE & PRSI over the years too, great, so now we are on the same page, why do you want to penalise them for it?



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