Social Justice Ireland:No justification to reduce social welfare rates
Friday, September 16th, 2011Below is an excerpt from an artilce by Social Justice Ireland as to why there is no justification for the government to reduce social welfare rates in budget 2012.
“There is absolutely no justification for Government to reduce social welfare rates in Budget 2012. Government can reduce its borrowing by €3.6bn in the Budget while still protecting Ireland’s most vulnerable people who have taken more than their fair share of the ‘hit’ for the reckless and at times illegal activities of those who got Ireland into its present mess.
Addressing the Pre-Budget Forum of the Department of Social Protection today (Friday, September 16, 2011) Michelle Murphy, Research and Policy Analyst with Social Justice Ireland, pointed out that: “those surviving on low incomes continue to struggle and, unlike other groups in society, have no room to absorb income cuts. Any such cuts would simply deepen their poverty and further undermine their attempts to live their lives with dignity.”
- 14.1% of Ireland’s population is at risk of poverty with incomes below €11,585 for a single person or €26,877 for a household of four.
- 37% of all the households at risk of poverty today are headed by a person with a job. A further 44% are headed by a person outside the labour force (i.e. older people and people who are ill, have a serious disability or are in caring roles) and are totally dependent on social welfare.
In the current difficult economic climate, Social Justice Ireland believes that social welfare rates should not be reduced for five reasons:
- SW payments are low and for most households do not cover the minimum they require to live life with dignity.
- Inflation is likely to rise by 1.5% in the coming year so to stand still welfare rates should rise by that amount. However Social Justice Ireland recognises the difficult economic position the government is in and accept that an increase would be very difficult to achieve.
- Without the social welfare system Ireland’s poverty rate in 2009 (the latest year for which data is available) would have been 46 per cent. The actual poverty figure of 14.1 per cent reflects the fact that social welfare payments reduced poverty by 28.6 percentage points.
- Without any social welfare payments 88% of all those aged 65+yrs would be living in poverty. Similarly, social welfare payments (including child benefit) reduce poverty among those under 18 years from 47.3 per cent to 18.6 per cent.
- Government can achieve its fiscal targets without reducing welfare rates. In the coming weeks Social Justice Ireland will publish a fully-costed Budget for 2012 showing how this can be done and how vulnerable people can be protected.”
By Social Justice Ireland
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