Doubts over PRSI cuts and pension rises

Posted on October 24, 2007 at 01:14 PM

Before the General Election the Government committed to lower the rate of PRSI from 4 to 2 per cent and increase pensions to €300 a week however doubts have been raised following the recent publication of the Social Insurance Fund

Supporting the proposed pension increase Eamon questioned the Taoiseach on the Government's ability to finance both the PRSI cuts and pensions given the assessment of the Social Insurance Fund which was published recently raising serious questions about the Government's capacity to deliver on its promises.

While the report was only recently published we know the Government was in possession of these findings back in April. Fianna Fail then persisted in campaigning on a commitment they realised would be almost impossible to deliver.

When questioned in the Dáil on the issue the Taoiseach failed to give categorical insurance on when the commitment would be met and financed.

You can read more about the potential deficit in the Social Insurance Fund which would payroll both the promised PRSI rate cuts and the increase in pensions here.

Tagged with Social & Family Affairs