'Scrooge-like' move roundly criticised

CHRISTMAS BONUS: THE GOVERNMENT was accused of “cancelling Christmas” for more than a million welfare recipients after it announced…

CHRISTMAS BONUS:THE GOVERNMENT was accused of "cancelling Christmas" for more than a million welfare recipients after it announced it will not pay out the traditional Christmas bonus payment this year.

Groups said the move would drive thousands of people toward moneylenders at a time when their incomes are under the greatest strain.

The bonus – typically a double welfare payment made in December – was paid to about 1.3 million people last year. The decision not to pay it will save the State about €156 million.

Minister for Social and Family Affairs Mary Hanafin said it was a “tough call”, but insisted the alternative was cutting social welfare rates across the board. “It will hurt people, but unfortunately it’s a choice we had to make.”

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The move was roundly criticised by Opposition parties and lobby groups yesterday.

Olwyn Enright, Fine Gael’s spokeswoman on social affairs, said the measure was one of “Scrooge-like proportions”.

Age Action said the loss of the Christmas bonus would equate to a 2 per cent cut in the annual income of older people.