Government’s Budget Makes Steps in Right Direction But More to be Done

1 Dec 2004

The Irish National Organisation of the Unemployed welcomes the increase of €14 announced in today’s Budget for the lowest rate of social welfare. This along with the removal of all National Minimum Wage earners out of the tax net show that the Government is making some inroads into its commitments in the Sustaining Progress agreement.

'The INOU has been consistently calling for the removal of the National Minimum Wage earners from the tax net and this development together with the increase in the FIS thresholds is certainly welcome’, said June Tinsley, Policy Officer INOU.

‘However, more could have been done to address the ‘Making Work Pay’ issues, to ease the transition from welfare to work by ensuring that the take up of employment guarantees a increase in the household income. Of particular importance is the threshold for the retention of secondary benefits which still remains unchanged for the eleventh consecutive year. This greatly impacts on those wanting to participate on Active Labour Market Programmes such as Community Employment and Jobs Initiative and for the long-term unemployed returning to work. There was also no support announced for parents dealing with childcare costs,’ she added.

Finally, it was disappointing that no increase to the Child Dependant Allowance was announced. This targeted income measure has also remained unchanged for years and could successfully reduce the number of children living in poverty. The increases in Child Benefit although welcomed do not go far enough in assisting in the elimination of child poverty.