Unemployed will wait at least 10 months for dole to catch up with inflation

15 Dec 2000

Responding to today's CPI which puts inflation for November at 7%, the Irish National Organisation of the Unemployed (INOU) has stated that those on the dole will be waiting at least ten months for their payments to catch up with the rate of inflation.

"Last years £4 increase in the dole was wiped out by June, one month after people received it. The £8 increase from this year's Budget will not be paid until April 2001, and there is a very real fear that the value of this increase will also be eroded before it is paid." said Tony Monks, General Secretary of the INOU."

The INOU has been highly critical of Minister MC Creevy's decision to increase basic social welfare payments by only £8. " With unemployed people bearing the brunt of the inflation problem, coupled with a budget surplus of £3.5 billion, and clear commitments in the PPF to increase the real value of all social welfare payments, the Budget increase of £8 was an insult to unemployed people."

The INOU has expressed concern about the effectiveness of the anti inflationary package announced in Budget 2001. " The average inflation rate for 2000, will be nearly double the 3% predicted by the Minister for Finance. The official prediction for next year is currently 4.5%. Unless the anti inflation package in the Budget is very effective, yet again the poorest in society will be the ones feeling the pinch."

"People on low incomes spend most of their money on basic items like food, heating and children's clothing. A 7% inflation rate will push many families to the pin of their collar in the run up to Christmas". concluded Mr Monks.

ENDS

Further information
Noeleen Hartigan, Press Officer 
087 616 7689 / 01 856 0088