Based on the increased demand for help which it is experiencing in recent months, up almost 30% in some parts of the country, the Society of Saint Vincent de Paul has identified five areas where the forthcoming budget could bring even more hardship on the most vulnerable.
“The Government’s focus must be on ensuring that the burden for economic recovery rest squarely on those who benefited most in recent years, not those who benefited least”, said the Society.
“During March we made a submission to the Government which asked that key safeguards and protection for vulnerable households and individuals be put in place in the five areas; Social welfare payments; Eligibility for various benefits; Education; Staying at work supports and the Protection of those on low income.” said Mairead Bushnell. SVP National President.
“The need to provide greater assistance for the most vulnerable in a time of economic upheaval is well understood by the Irish people and is reflected in the huge increase in offers of help and support which the SVP has been experiencing around the country.
“We sincerely hope that the Government decisions to be announced on Tuesday 7th April will mirror the attitude of the hundreds of ordinary citizens who are telephoning and calling in to our offices to offer their support for our work.” she said.
For further information contact:
Jim Walsh, Press liasion. Tel: 087 2541700
or
John Monaghan, National Vice President. Tel: 086 8302246
Summary of Saint Vincent de Paul submission to Government on April 2009 budget
1. In its submission to the Government the SVP said that current social welfare payment rates, including pensions, must not be reduced as current rates are still inadequate to provide a reasonable standard of living as evidenced by the increasing expenditure by the SVP on basic living necessities such as food, fuel, education and others. While there have been reductions in inflation and the Consumer Price Index (CPI), mainly through reduced interest rates, and petrol prices, poorer households have to spend a significant proportion of their low incomes in areas where prices are still very high, such as electricity, heating, food, education and various service charges. For example (CPI Report Feb. 2009), Energy, +17%; Education, +5.6%; Health,+ 5.8%; General good and services, +7.7%. Our food and energy prices, while beginning to decline, are still among the highest in Europe. The SVP also said that poorer households do not have a capacity to cut back spending on basic necessities and indeed often have to spend more on these compared to people on higher incomes because of lack of access and financial exclusion.
In the area of child supports the SVP has noticed that low-income households seeking assistance from the Society are relying increasingly on Child Benefit to provide a significant proportion of the household income. If as has been predicted, Child Benefit is reduced, then the Qualified Child Increase (the targeted child payment going to children in families on Social Welfare) must be increased by the same amount to ensure that poverty, and child poverty in particular, is not increased.
2. The issue of eligibility criteria for various benefits is also of serious concern to SVP. Given the increase in calls for assistance to the Society from people recently unemployed and the experience of its members in dealing with their problems, the SVP is concerned at the prospect of changes to the eligibility criteria for Job Seekers Benefit. Any changes that move people onto the means tested Job Seekers Allowance quicker than is already the case will bring about an even sharper drop in household income than is presently the case. The SVP also sees many families and children just about surviving because of the provision of secondary benefits such as: the Back to School Footwear and Clothing Allowance, Fuel Allowances, the Living Alone Allowance, Carer’s Allowance or the Medical Card. Consequently it would view any restriction in eligibility to these benefits as a direct attack on the most vulnerable in Irish society.
3. The senseless and counter-productive education cuts made in the Budget in October 2008, for example, the €7.5 million cut-back in the support for school books to non-DEIS schools and the earlier cut-back in the budget for the School Completion Programme, are of major concern to the SVP. Cuts in education, particularly those affecting the disadvantaged children and young people assisted by the SVP, will not just prevent them acquiring the education and skills necessary for participation in the ‘Smart Economy’, sought by the Government, but will in fact perpetuate intergenerational poverty with all its consequent financial and social implications. Based on our long experience in tackling educational disadvantage throughout Ireland. The SVP says that the budgets for Early, Primary and Secondary education be protected from any further cut-backs.
4. The SVP is very concerned about the plight of self-employed people who are experiencing great difficulties in accessing income supports through the social welfare system. It is the experience of SVP members that this is a particular problem in rural Ireland, where many people associated with construction and related activities established themselves as sole traders during the construction boom and are now in serious financial and emotional problems.
The SVP says that it is far better for the State, the economy and individuals to keep a person in employment than being fully reliant on State benefits. Therefore efforts should be explored to keep people in employment by imaginative supports for companies in difficulty, through greater flexibility into schemes such as Family Income Supplement (FIS). For example, in the case of FIS, the 19 hours a week lower limit on eligibility should be relaxed so that more people working fewer hours per week can still qualify for help.
The plight of foreign nationals now in financial difficulty due to unemployment and the restrictions to financial assistance due to the Habitual Residency Condition requires urgent attention. It is the experience of the SVP and other groups that unemployment, calls for assistance and homelessness is increasing among this group. As a State we were happy to have them come here providing their skills and work ethic during the good years so morally we cannot simply disregard them now that the economy is in difficulty.
5. The protection of those on low incomes from hardship suffered through indirect taxation is also dealt with by SVP.
It calls on the Government to decrease VAT to its pre-Budget 2009 levels. This indirect tax creates greatest pain for those who can least afford it – the unemployed, those on welfare benefits and people on pensions. Indirect taxes are inequitable in that they take no account of ability to pay. They are a graphic example of the principle that the ‘Poor Pay Most’, says the Society
The SVP also calls for the government to adequately resource the Money Advice and Budgeting Services (MABS) and allocate additional resources at local branches where waiting lists in many of them are in excess of 10 weeks. In addition provide additional staff both centrally and at local Social Welfare Offices to speed up the processing of claims for Job seekers Benefits and particularly the means tested Job Seekers Allowance. Likewise, ensure that there are acceptable levels of coverage in the Community Welfare Service.
In its conclusion the SVP says that it is aware that very difficult choices must be made by Government. But it says people who are already in poverty, those who recently lost their job, and those who are at great risk of losing their employment, should not bare the same burden as those who are in a better position to withstand the anticipated Budget changes.