Social Welfare Bill 2001: maintaining, not fighting marginalisation and social exclusion
20 Feb 2001
"The Social Welfare Bill 2001 is a continuation of the incomes policy pursued by this government since it came into office - give the largest increases to the wealthiest people, and the smallest increases to the poorest people." According to Camille Loftus of the Irish National Organisation of the Unemployed.
"Between 1997 and 2001, for every £1 increase in the lowest rates of social welfare, someone on the average industrial wage got £4.10, a person on £60,000 got £6.80, while a person earning £100,000 got £9.40, just from tax cuts. This does not include wage increases. It is an unjust policy, which has continually widened the gap between the rich and the poor."
The INOU drew attention to three examples of this policy in the Social Welfare Bill in advance of its presentation to the Dáil today; rates of payment, women in low-income households, and pensioners.
Rates of Payment
The main objective of social welfare payments is to take people out of poverty. People on the lowest rates of social welfare (Unemployment Assistance and Supplementary Welfare Allowance) suffer the greatest risk of, and actual experience of poverty. Yet the Bill only provides for an £8 increase for this category, while those on higher rates of social welfare payment will get an increase of £10.
The lowest rate of social welfare payment will become £84. The 1998 Living in Ireland Survey puts the 50% poverty line at £93.62; uprating this figure by inflation (which is lower than the combination of wage increases and tax cuts which benefit the rest of the population) yields a poverty line of £102.16 in 2001.
"Minister McCreevy stated that the 3rd aim of his budget was to "promote a fairer society". But this Bill leaves people on the lowest rates of social welfare £18.16 below the poverty line each week - what's fair about that?" Ms. Loftus asked.
? The Bill should be amended to provide all social welfare recipients with a £10 increase
Women in Low Income Households
The Bill provides for the lifting of the 'limitation' for couples who both qualify for Disability Allowance, but does not extend this to claimants of Unemployment Assistance. Lifting the limitation means that where both individuals in a couple meet the eligibility conditions of the payment, they will both receive full personal rates of payment, rather than a personal rate and a 'qualified adult' rate.
"A mother whose partner is unemployed, who is genuinely and actively seeking work, who passes the means test, and who has organised childcare, is still denied the same rate of unemployment compensation as her partner. The Department of Social, Community, and Family Affairs, still treats her as if she hadn't made all this effort. Unsurprisingly, there are 19,158 'qualified adults' whose partners receive unemployment payments, but only 4,087 of them are actually signed on the Live Register in their own right" Ms. Loftus noted.
? The Bill should be amended to support low income women returning to the labour force, by providing financial recognition for their job search efforts through lifting the limitation for couples who are both eligible for Unemployment Assistance.
Pensioners
Those who suffered long-term unemployment are likely to find that they won't qualify for the Contributory Old Age Pension when they reach 66. Hence the poverty they suffered during their working lives will be repeated when they reach retirement. The Non-Contributory Pension payment is £10.50 a week lower than the Contributory Pension, and all means - savings, investments, income earned post retirement - is used by the Department to reduce the weekly payment further. In contrast, recipients of Contributory Pensions can have an occupational pension, savings and investments, and can even continue working full time, and still receive the full rate of payment.
"This Government has made much of the improvements granted for pensioners. Minister McCreevy said on Budget day that "no one can say that this Government does not recognise and appreciate the part played by the workers of yesterday" - except of course the unemployed of yesterday, who are still, apparently, deemed undeserving of fair treatment" Ms. Loftus concluded.
? If Government is serious about supporting older workers to remain in the workforce, the means assessment for the Non-Contributory Pension must be reformed, to allow people the benefit from the earnings they have worked so hard for"
For further information contact:
Camille Loftus, Welfare to Work Co-ordinator 01 856 0088 / 087 979 0985
Noeleen Hartigan, Press Officer 01 856 0088 / 087 616 7689
