The Society of St Vincent de Paul believes that this budget has no positive message for low earners or those under threat of losing their jobs.
We are very concerned at a number of aspects in this budget where the cumulative effect will be to bring those in low paid work further into poverty.
Taxing those below the minimum wage:
30% of people already in poverty have a job. Bringing those below the minimum wage into the tax net through the income levy will only exacerbate this problem. Coupled with the loss of the Early Childcare Supplement and the looming threat of taxing child benefit in the next budget, the situation facing low paid families is bleak. Despite the falling Consumer Price Index, inflation in the areas of food, fuel, education, health and transport continues to rise. These are the areas where poorer households spend a significant proportion of their income.
Welfare Rates and the Job Seekers Allowance for Young People:
SVP is totally opposed to any moves to reduce welfare rates. In relation to the reduction in job seekers allowance to the under 20s we understand the rationale for the change. However, we are concerned that there may not be sufficient places in the system to cater for all new entrants. We are also concerned for families where a young job seeker is contributing to the household budget.
While we welcome the development of an additional 25,000 training and education places (using existing resources) this is certainly not enough to solve the problem of youth unemployment.
Rent Supplement:
The changes in the Rent Supplement Scheme do nothing to protect vulnerable tenants, and are likely to worsen their situation. Due to changes made both in the October budget and this budget, recipients of Rent Supplement have now had to pay an additional 11 euro per week contribution towards their rent.
In reducing the rent supplement rates the DSFA ‘hopes’ that landlords will reduce their rents and release tenants from contracts which they have signed. There is no incentive for landlords to do this. Those who will suffer because of this measure are people reliant on rent supplement to meet their housing needs. SVP is still paying rent supplement top ups to landlords and this will certainly continue. This has been a missed opportunity for Government to enhance the Rental Accommodation Scheme which provides security of tenure for both tenants and landlords and is linked to quality standards.
Christmas Bonus
The decision not to pay the Christmas bonus is regrettable. It will have the effect of forcing many families to increase their borrowing to meet additional costs at this time.
Early Childcare and Education
Finally, we warmly welcome the provision of a free Early Childcare and Education year for all pre-school children. This will significantly improve children’s ability to reach their potential within the education system.
For further information contact:
Jim Walsh, Press Liaison Tel 087 254 1700
Or
John Monaghan, National Vice President. Tel 086 830 2246