Budget widens gap between rich and poor by €266 per week, says CORI

THE Government has widened the gap between rich and poor by €266 a week following the latest Budget announcements.

The Conference of Religious in Ireland (CORI) Justice Commission claimed yesterday this gap had grown over the past six years since the present Government took power.

CORI Justice Commission director Fr Sean Healy hit out at the Government for a Budget which he claimed was unfair, unjust and bad for social cohesion.

"The Government has failed to honour the aims and objectives of the Programme for Prosperity and Fairness these committed Government to building a fairer and more inclusive society," Fr Healy said.

But a Department of Finance spokesman rejected the claim that this Budget would widen the gap between rich and poor by €266 a week.

This Budget gave €530 million to social welfare recipients and €186 million to the PAYE workers in tax concessions, the Department of Finance spokesman said.

"I would reject completely CORI's analysis of the Budget even Combat Poverty came out and welcomed it as a measure that will help the poor," the department spokseman said.

CORI based their calculations of the €266 a week gap between the rich and poor on pay increases and tax reductions as well as social welfare increases, Fr Healy said.

They also included the impact of the new savings scheme which better off people can access, but is beyond the reach of Ireland's poorest.

The figure was reached by:

Looking at the gap in disposable income between the single long-term unemployed and those earning €50,000. This has widened by €252 per week.

Those earning €50,000 per year can also gain €14 per week from the Government Savings Scheme bringing their total gain to €266 per week.

And the impact of the Government's decisions on the take home income of couples has been most striking, Fr Healy told a press conference in Dublin.

After six Budgets couples who are long-term unemployed are €72 a week better off while a couple on €50,000 are €271 a week better off, Fr Healy said.

"It is a serious indictment on this Government after six years that a great many people do not have enough income to provide for basic necessities and the numbers living in relative income poverty continue to grow," the CORI Justice Commission director said.