Budgeting for unemployment and poverty
10 Dec 2009
The INOU are appalled at the cuts announced in yesterday's Budget to Jobseekers payments. The inflation arguments used by the Government just don't stand up as they fail to take into account the increases in the cost of living for social welfare recipients arising from the previous two Budgets. For example, any unemployed person living in rent supplement accommodation has seen their cost of living increase by €15-20 per week. Budget 2010 will see further increases as the cost of medicines and heating one's home will rise. The fuel allowance should have been increased yesterday to offset the poverty impact of the new Carbon tax.
Today the Minister for Social and Family Affairs made much of the increase in the social welfare rate in last October's Budget but what she failed to point out is that with the loss of the Christmas bonus, unemployed people and other welfare recipients have seen a drop in their expected income of 2% in 2009. With the changes announced yesterday unemployed people ages 25 and older will see a further drop in their income of 4.1% in 2010.
The changes made to people under 25 are even more dramatic. New claimants who are 20 and 21 years of age will only be entitled to a Jobseekers Allowance of €100 per week; while new claimants who are 22-24 year olds will only be entitled to a payment of €150 per week. "The INOU is very concerned that the clear message being sent to young people is to emigrate," said Bríd O'Brien, Head of Policy with the INOU. The Government is claiming that it wants to encourage young people to stay on in education and training however the additional 26,000 'training and support places' announced yesterday are insufficient given that there are over 423,000 people on the Live Register.
What is even more extraordinary is that there are cut backs in the education area which will make it harder for unemployed people to up-skill themselves adequately for the 'smart economy' the Government says it wants to create. And yet they are proposing cutting people's Jobseekers payment if they refuse an offer of a job or a training course. The INOU strongly believes that a key element of any activation policy should be choice. Many unemployed people have raised their concerns of been sent on courses that have no future and have little prospect of leading to a job.
The INOU finds it telling that the Social Welfare Bill is being rushed through the legislative process over a two day period. "Clearly they are determined that local pressure on backbench TDs will not undermine these decisions," continued Bríd.
Even though time is very limited we would urge all unemployed people and community organisations to contact their local TDs immediately to let them know that the proposed cuts to social welfare payments are not acceptable.
For further information contact:
Bríd O'Brien, Head of Policy and Media at 01 856 0088; 086 608 964
