Payment cuts ‘will cause more job losses’

CUTS to welfare recipients will have a knock-on effect on consumer spending and result in even more job losses and a further shrinking of the economy, it was claimed last night.

Main social welfare payments and one parent family payments all face weekly cuts of €8, it was announced.

People under 66-years of age will see losses of around 4% in their weekly dole money, bringing the main rate down to 2007 levels of €188.

The measure was announced yesterday along with other welfare cuts in a move that is expected to save €397 million.

Where a couple are claiming the main welfare benefit type, the weekly income will drop from €326.10 to €312.80.

There will also be a decrease of €8 per week for maternity benefits.

Young jobseekers aged 18 to 21 will not be affected. However, those aged 22-24 will see their weekly dole claim drop by €6.

On top of the changes to jobseekers payments, the Social Protection Minister Eamon Ó Cúiv said he expected to make up to €100m in savings by reducing the live register through more intensive work schemes.

Community Platform, a network which address poverty and social exclusion, said: “Cutting social welfare, the minimum wage and child benefit will not only have a devastating impacton the most vulnerable it will also have a damaging impact on consumer spending, resulting in even more job losses and a further shrinking of the economy”.

The National Youth Council of Ireland also said the cuts would promote an exodus of young people.

Council assistant director James Doorley said: “The further cut of €6 to the already very low €150 that young jobseekers aged 22-24 will only compound the difficulty young people are having making ends meet.”