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Ireland:
Social Security Rise Urged
to
Pay for Elderly Care
Ireland
Online
June 25, 2003
Ireland - Employees
could see a 1.5% increase in social security payments to fund the care of
the elderly, it emerged today.
The recommendation – drawn up amid concerns over the ageing population
– was made in a report commissioned by the Government into the financing
of long-term care.
It advised an increase in general taxation, private insurance and equity
release, but favoured the hike in Pay-Related Social Insurance (PRSI)
payments.
Minister for Social and Family Affairs Mary Coughlan said the report would
form the basis of a general consultation process over the coming months.
She said: “It is most important to receive comprehensive views on the
very significant issues in relation to cost, financing and possible models
of benefit design which are set out in this report.”
Ms Coughlan said demand for long-term care would increase due to the
ageing of Ireland’s population.
A drop in the number of carers is expected as a result of falling birth
rates and greater participation by women in the workforce.
“Following the consultation process the Government will be in a position
to set up the working group to examine the strategic policy, cost and
service delivery issues associated with the care of older people as
outlined in the Partnership Agreement,” Ms Coughlan added.
The report estimated that the total number of older people in need of
moderate or high levels of care represented 19.5% of those aged 65 or
over.
It estimated that the number of people in need of this type of care would
increase from 2.1% of the total population in 2001 to 3.8% by 2051.
A second report for the department of health found that the cost of the
state-funded scheme for long-term private nursing home care was not
sustainable in the future.
It disclosed that the cost of the scheme had risen by more than 600% since
it was introduced 10 years ago.
This was due to increased demand and greater availability of private
nursing home beds.
Fine Gael urged the Government to take immediate action to address the
“inconsistencies” in the current system.
Health spokesman Olivia Mitchell welcomed the report but said it only went
halfway to addressing serious problems in the sector.
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