The community and voluntary pillar of the Programme for Prosperity and Fairness welcomed the acknowledgement by the Taoiseach, Mr Ahern, and the Tanaiste, Ms Harney, yesterday that people on social welfare had been particularly affected by the high rate of inflation.
The general secretary of the Irish National Organisation of the Unemployed (INOU), Mr Tony Monks, said: "Quite strong commitments have also been given to use tax reform to take people on the national minimum wage out of the tax net."
He added that for partnership to work, "it has to work for the whole of society and it has to reduce the gap between the haves and the have-nots". The pillar presented a series of "key non-inflationary initiatives" needed to reduce that gap. It called for "comprehensive poverty proofing" of the Budget and an increase in basic social welfare rates from the current £77.20 a week towards £100 a week. It also wants child benefit for third and subsequent children to be raised from £56 a month towards £100 a month.
The pillar wants commitments for "a more equitable strategy to support parents to meet their childcare needs", to be met through a new childcare payment.
It said while inflation had eroded workers' earnings, they had been compensated through tax cuts, with the higher-paid receiving most. It called for the next Budget to help low-income groups such as those on social welfare.