According to the results of five budgets implemented by the Coalition Government, a couple with a single income of €100,000 is now advantaged by €73.35 weekly. Meanwhile, a single-income couple earning €30,000 only sees a meager increase of €3.34 weekly. These findings came from an equality-focused institution.
Social Justice Ireland (SJI) critiqued the budget, labelling it as “severely disappointing” and “negative in progress” on Wednesday. It was stated that these budget changes will allow the affluent to enjoy lasting income increase whilst the less fortunate only receive temporary payments which will have been expended by the year’s end, pushing them even deeper into financial instability.
SJI’s analysis post-budget revealed that the core social welfare rates have seen an increment of €12, bringing most rates to a total of €244 weekly. This increment, however, is considered “insufficient” to sustain purchasing power. This slight rise is a “true concern” that will expand the wealth disparity, SJI’s CEO, John McGeady surmised.
The research also revealed that the gap between an individual earning €100,000 or above (which constitutes approximately 6.5% of the workforce) and a person on unemployment benefits would increase by €23 to roughly €990 weekly, as a fallout from Tuesday’s budget.
The measures of this budget “do not align with the declared objective” of addressing child poverty. SJI pointed out that this issue affects one child in every seven.
Mitigating these issues is contingent upon “resolving” the poverty of these children’s families, which includes ensuring “sufficient adult welfare rates and acceptable wages and conditions”. SJI had previously recommended an increase of €50 to the standard €140 child benefit, a boost of €25 weekly to core welfare rates, and refundable tax credits for individuals whose earnings are not substantial enough to bear taxes.
The analysis indicates that recent strides in child support payment boosts – specifically €4 a week for under-12s (up to €50) and €8 for children aged 12 and over (up to €62) – are commendable. However, it highlights the disregard of demands for additional increases, leaving the most vulnerable children and their carers in a precarious state.
Mr McGeady pointed out the Government’s endeavours to ease the burden of living costs. Nonetheless, the necessity for these large payments indicates a deep-seated issue of significant poverty, where 10% of the population is poverty-stricken and almost a million suffered deprivation in 2023.
He emphasised that unless lump-sum payments’ worth is converted into enduring income support, the underprivileged could fall further into poverty by next year. He stated that this could heighten the inequality gap, marking it as an outcome of regressive financial planning.
According to the singularParent advocacy group, One Family, occasional lump-sum payments for welfare are insufficient to pull the most disadvantaged parents and children from persistent poverty.
Chief executive Karen Kiernan criticised the Government’s failure to raise the income disregard – the threshold income before affecting welfare – for single-parent family allowances. She labelled the oversight as “unfathomable”.
She pointed out that while the working family payment disregard had seen a €60 per family increase, reflecting the national minimum wage change, this adjustment was not applicable to parents on the jobseeker’s transitional payment with a child over seven. This would create obstacles for such parents looking to take on additional work.