week for a single person and for a married or cohabiting couple but this was reduced to for an €1,400 €600 individual and for a married couple and subsequently has now been reduced to per week for a single €1,200 €500 person with effect from 1 January 2014 and per week for a married or cohabiting couple. €900 In addition to this, the prescription charge has risen from its initial 50cents per item in 2011 to per item in €1.50 2012 and now stands at per item. €2.50 The threshold on the Drugs Payment Card scheme has risen from in 2011 to in 2012 and the threshold €120 €132 was further increased to in 2013. €144 Summary All of these measures directly impact GSRMA members, many of whom must incur this expenditure out of necessity owing to age and ill-health. These additional medical costs coupled with pension reductions and increased taxes serve to have a significant impact on standards of living. Furthermore, the proposed introduction of a compulsory universal health insurance which certain reports estimates at per annum will have additional implications and there is no suggestion of corresponding tax €1,600 reductions to mitigate this additional cost. Charges The introduction of Water Charges is set to take effect from 1 January 2015. To date, the Minister has not yet signalled an indicative cost for these charges but there does not appear to be any automatic exemptions planned for retired people. These charges when introduced will further add to the financial burden on people who have retired and whose income is predefined in most cases. Furthermore, these charges follow on from increased charges for utilities such as electricity, gas and other fuels. Increase in VAT rate The standard rate of VAT was increased from 21% to 23% with effect from 1 January 2012. This increases cost of living for all individuals. The goods and services affected are common day to day expenditure items and include as follows: Transport Fuels petrol, auto diesel, motor oil – Vehicles cars, lorries, etc –
week for a single person and €1,400 for a married or cohabiting couple but this was reduced to €600 for an individual and €1,200 for a married couple and subsequently has now been reduced to €500 per week for a single person with effect from 1 January 2014 and €900 per week for a married or cohabiting couple. In addition to this, the prescription charge has risen from its initial 50cents per item in 2011 to €1.50 per item in 2012 and now stands at €2.50 per item. The threshold on the Drugs Payment Card scheme has risen from €120 in 2011 to €132 in 2012 and the threshold was further increased to €144 in 2013. Summary All of these measures directly impact GSRMA members, many of whom must incur this expenditure out of necessity owing to age and ill-health. These additional medical costs coupled with pension reductions and increased taxes serve to have a significant impact on standards of living. Furthermore, the proposed introduction of a compulsory universal health insurance which certain reports estimates at €1,600 per annum will have additional implications and there is no suggestion of corresponding tax reductions to mitigate this additional cost. Charges The introduction of Water Charges is set to take effect from 1 January 2015. To date, the Minister has not yet signalled an indicative cost for these charges but there does not appear to be any automatic exemptions planned for retired people. These charges when introduced will further add to the financial burden on people who have retired and whose income is predefined in most cases. Furthermore, these charges follow on from increased charges for utilities such as electricity, gas and other fuels. Increase in VAT rate The standard rate of VAT was increased from 21% to 23% with effect from 1 January 2012. This increases cost of living for all individuals. The goods and services affected are common day to day expenditure items and include as follows: Transport Fuels – petrol, auto diesel, motor oil Vehicles – cars, lorries, etc
Report-to-Garda-Siochana-Retired-Members-Association.docx