A mixed reaction to increases in social welfare

The Budget's social welfare increases met with a mixed reception from organisations working with the unemployed, the poor, Travellers…

The Budget's social welfare increases met with a mixed reception from organisations working with the unemployed, the poor, Travellers and children.

The government advisory body, the Combat Poverty Agency, broadly welcomed the measures, but said the Budget could have been more ambitious in increasing social welfare payments for people on lowest incomes.

Its director, Ms Helen Johnston, commended the policy direction of increasing welfare payments in line with wages. She stressed, however, that welfare payments should provide a minimally adequate living standard. Single people on the lowest social welfare payments received a weekly increase of €10.16 (£8).

The agency, along with the Conference of Religious in Ireland, the Society of St Vincent de Paul and the National Women's Council of Ireland had called for a £14 increase, bringing the lowest social welfare payment to £98 a week.

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The child benefit increases were a step in the right direction of supporting families with the costs of raising children, she added.

Ms Johnston said the issue of child poverty still needed to be tackled, with poverty tending to be concentrated in larger families. To reduce this, more resources could have been directed towards child benefit for third and subsequent children, she said. The Budget introduced a £25 increase for first and second children, bringing the monthly total to £92.62. The £30 increase for third and subsequent children brings the monthly total to £116. The agency had sought an increase of £44 per month for third and subsequent children.

"This is a Budget which will make progress in reducing poverty. However, more could have been achieved to impact radically on levels of income inequality and reduce the growing gap between rich and poor," added Ms Johnston.

Barnardos, the agency for children and families, said the Minister for Finance should have given more generous increases in Child Benefit and done more to tackle child poverty.

Its chief executive, Mr Owen Keenan, said the Minister for Finance should have "front-loaded" the increases to achieve the Government's target for next year of £117 per month for the first and second child and £146 for third and subsequent children. "Ireland has one of the highest levels of child poverty in Europe, which is why Barnardos and other organisations have been pressing for a range of measures including an immediate increase in child benefit to £117.50", he said.

The Irish National Organisation of the Unemployed (INOU) said the €10.16 (£8) increase in the weekly dole payment was a disgrace. The INOU had sought a £14 increase, bringing Unemployment Assistance to £98 per week.

"Instead of ensuring that the 140,000 plus currently on the Live Register and the thousands more that will join them in the next few months have a decent income, they have run the risk of yet again widening the gap between the rich and the poor," said Ms Noeleen Hartigan, INOU's welfare-to-work co-ordinator.

She said a family with one child living on social welfare received an increase of merely £16 a week in the Budget, whereas a family on £40,000 will be £59.85 a week better off.

The Society of St Vincent de Paul said the £8 weekly rise in the lowest weekly social welfare payment would not ensure an adequate income for households in need. It said the failure to increase child dependent allowances called into question the Government's commitment to eliminating child poverty.