Budget Q

Q. What were the main points relating to the unemployed and the ‘working poor’?

A. An increase of €14 per week special increase for lower payments, with the new rates bringing the weekly figure up to €163. Child benefit increased by €10 for the first two children and €12 for the third and subsequent children.

There was also a €39 per week increase in FIS Thresholds while Capital Assessment was eased so as to allow the first €20,000 to be disregarded. In a move welcomed by many, those on the minimum wage of €273 a week will be removed from the tax net, although with that set to rise next year, some groups were unsure whether people eliminated from the tax net could find themselves back in the loop.

Also an increase of €14 per week in minimum rate of Maternity Benefit. One Parent Family Payment recipients to receive transitional half-rate payment for six months where income exceeds €293 per week.

Q. Any additional measures?

A. The assessment of Benefit and Privilege for Unemployment Assistance abolished for those aged 26 living in the parental home, to be introduced in April next year. In terms of qualified adult allowances, upper income ceiling for tapered rates to be increased by €10 to €220. There is also an extension of the entitlement to Smokeless Fuel Allowance. Back to Education qualifying period reduced by 3 months to 12 months. For employees, threshold for payment of 2% Health Contribution increased from €356 a week to €400.

Two additional streams of funding granted for Money Advice and Budgeting Service, with 13,000 people estimated to be using the service at any one time.

Q. Any major omissions?

A. Many organisations were angry that child benefit did not increase to a figure closer to €150, while others criticised the Government for not focusing on issues such as the back-to-school clothes and footwear allowance and said not enough was done for social housing.

There was also no movement, again, on the Child Dependants Allowance, a move criticised by St Vincent de Paul. Strong criticism from Threshold relating to lack of new affordable housing schemes.

Q. What about the Savage 16?

A. The DSFA claim to have amended or reversed nine of the cuts. However, some groups said it was unclear what measures were being taken to reverse them. For example, the One Parent Exchange and Network said in the case of rent supplements, it seems the Government is returning responsibility to social welfare workers when it comes to assessing people for rent supplements, but is unsure if that’s definitely the case.

Q. How many people are set to benefit from yesterday’s budget?

A. Mr Brennan said with payments increased to three times the expected rate of inflation, 1.5 million people would benefit. He said the Government was on track to deliver on pledges made in Sustaining Progress and elsewhere.