Previously, we were informed that this budget would be a generous “giveaway” in anticipation of the pending general election. However, despite Social Protection Minister Heather Humphreys revealing the “largest budget package” in the nation’s history of €2.6 billion, the reception has been largely disappointing.
Given the celebratory remarks and anticipation around the €14 billion tax revenue from Apple, coupled with substantial corporation tax gains, this sense of disheartenment seemed almost inevitable. Advocacy groups had hopes of achieving increases of between €15 and €25 in baseline weekly welfare rates, with a focus on child poverty reduction by proposing a supplementary €140 monthly child benefit for the most impoverished children. Such increases would have provided continuous, substantial, and dependable gains for families.
However, the reality is a more modest increase of €12 weekly from January, resulting in disability and jobseekers allowances and the non-contributory pension rising to €244 a week. A number of one-time payments will be distributed among the most vulnerable households in the interim period.
Instead of the proposed second-tier child benefit, projected to be worth €1,680 annually for each underprivileged child, Humphreys revealed a weekly increase of €4 for children under 12 and €8 for those aged 12 or over, equating to annual gains of €208 and €416 respectively.
These increases will be applied to the child support payment (formerly the eligible child payment), paid in recognition of each child living in a welfare-dependent household.
Additionally, rather than increase the €33-a-week fuel allowance, distributed from September to April for the poorest households, a one-time sum of €300 was decided upon. Similarly, instead of raising the €22 weekly living alone allowance – allocated as an acknowledgment of the elevated cost pressure for solo residents – such individuals will receive a lump sum of €100.
Initiatives offering welcome relief to vulnerable households encompass the extension of the hot meal scheme to all primary schools from the ensuing year, a newborn fund offering an extra €280 per newborn, as well as increases in disregarded income for several benefit payments.
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The one-time payments, no question, will be amicably received particularly as families brace themselves for the long, freezing winter months. Yet, once these funds have been exhausted, beneficiaries will be faced with mere modest increases in the inception of the ensuing year; a time when, albeit slowing, inflation continues to mount as a formidable, escalating hurdle for those battling to keep their heads above water.
The appealing aspect of one-time lump sums from the state’s perspective is that the burden on the treasury concludes once payment is made. For the forthcoming budget, it would be significantly less challenging to refrain from repeating these than to reduce improved base rates.
For the Coalition parties, it’s very likely that voters will experience a fleeting sense of satisfaction from the extra cash, regardless of its ephemeral nature, especially as the general election draws nearer.