Proposed pension changes would hit women hardest

Published: Monday, August 08, 2016

The National Women’s Council of Ireland (NWCI) has today raised serious concerns around any proposals to reduce pension entitlements for part-time workers, as this would have a disproportionate impact on women pension entitlements. RTE has reported that officials from the Department of Social Protection have suggested “part-time workers would have to earn a minimum of €70 per week to be entitled to the full contributory state pension, instead of the current €38 per week.”

Orla O’Connor, Director of NWCI said,
‘Despite Government commitments to close the Gender Pension Gap it has actually widened in recent years - from 35% to 37%.  Cuts to the reduced rate contributory pension during the recession also had a disproportionate impact on women.  Given the new Minister’s welcome commitment to reducing pension inequality, these proposals would be a step in the wrong direction and risk condemning a whole new generation of women to pension poverty and inequality.’

Orla O’Connor continued,
‘The vast majority of low paid, part time workers are women, and without a doubt, these changes would hit them hardest.  The priority should surely be measures to tackle the growing problem of low pay and precarious work, not proposals that penalise the most vulnerable workers.   Indeed, there is a real concern that these proposals, by allowing employers to avoid PRSI on workers earning less the €70, the Government could be creating a situation which incentivises employers to reduce pay and hours even further.’

Orla O’Connor concluded,
‘NWCI believe these proposals would be regressive and must be resoundingly rejected.  Instead, NWCI are calling on Budget 2017 to deliver pro-active measures to reduce the gender pay and pension gap, including restoration of reduced-rate pensions and long overdue delivery of ‘Homemaker’s Credit’ or ‘Care Credit’, applicable for up to ten years and applied retrospectively back to 1973.  Reform of the marginal rate tax relief on private pensions, which disproportionately benefits higher earners, is also long overdue.’

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