Executive faces a big ‘grey vote’ comeback after a senior minister yesterday evening declined to cross out cutting or means-testing the old age annuity. Social Welfare Minister Eamon O Cuiv signalled the Govt may target rich aged receivers — or else cut annuity payments across the board.
The row exploded after Mr O Cuiv stated that he couldn’t guarantee the yearly 5bn spent on annuities wouldn’t be influenced in next year’s Budget.
“Looking at the 22bn spend ( on social welfare ), it is much too early to disqualify a quarter of that from consideration, ” he said to the Irish Independent.
After the over-70s medical cards cock up in 2008, the Coalition is chary of going close to the supposed gray electorate again. OAPs were excused from social welfare cuts in last December’s Budget. Finance Minister Brian Lenihan has given his Cupboard associates till the end of the month to propose methods to cut 3bn in spending. With up to 2bn to get cut from current spending next year and beyond, it is improbable the annuity will be spared from the axe indefinitely. Mr O Cuiv expounded if the governing body had to “return to the well again ” and cut social welfare spending, there would come a point where “it wouldn’t be justified ” to go back and cut back the same payments. He revealed there were plenty of folk of working age who were under financial stresses due to unemployment and home loan payments.
“I’m really not pronouncing we’re going to have a means test, ” he revealed.
” I’m not hinting at anything or governing anything in or out. “What I’m fundamentally exclaiming is that i’m having a look at 22bn of a spend, ” he revealed. “we have got to keep a really open mind on how we ensure we target whatever resources we have on the folks that are most short of the money.”. The minister claimed the 1st call for resources should be those that were most exposed and lots of aged folks had pointed at the predicament of young families with heavy bills. But Fine Gael social welfare spokesman Olwyn Enright expounded the old age allowance would “actually be the very last thing I might look at”. She asked : “Why did he start there? Why did he not look at where other savings may be made? It is extremely arbitrary to folks to discuss these things and try and look the hero then if they do not do it.”. Groups representing the old said OAPs were already being hit by a variety of cuts and would campaign strongly against any reductions. Age Action Eire head of advocacy Eamon Timmins announced the minister kept exclaiming there were some folks who didn’t need the state pension. You cannot means test the contributory pension, ” he revealed.