Hidden budget cutbacks will hit families
The hidden move will see cuts to family income supplement (FIS) for those who also receive the carer’s allowance.
Up to now, the allowance was not counted as means when calculating rates of FIS. But that is changing, meaning recipients of carer’s allowance who also receive FIS will see the latter payment reduced.
The move emerged as Social Protection Minister Joan Burton apologised for the controversial budget proposal to cut the disability allowance for young people — a measure which has now been put on hold pending a review, in response to public outcry.
“I am sorry if these proposals caused anxiety among people with disabilities and their families,” she told the Dáil during a debate on the Social Welfare Bill to give effect to a range of budget cuts.
Ms Burton also moved to soften the effect of cuts to community employment projects and changes to the widow’s contributory pension scheme.
But her department last night confirmed that the changes to the FIS will proceed — a move which will affect hundreds of families.
FIS is paid to families on low incomes — usually part-time workers. It acts as an incentive for people to stay in employment where they might be better off claiming welfare payments.
Under current rules, income from child benefit, domiciliary care allowance and carer’s allowance are not factored into calculations on the entitlement, which typically brings weekly earnings of up to €506 for single-child families and €100 more for every subsequent child.
But under new rules, the carer’s allowance, which ranges between €204 and €306 a week, will be considered in the calculation of net earnings.
It will affect about 300 families and reduce their earnings by about €120 a week, the department said.
The measure is not mentioned anywhere in the budget but is contained in the complex legal documentation of the Social Welfare Bill.
Fianna Fáil deputy leader Éamon Ó Cuív criticised the lack of transparency surrounding the move, saying he was “absolutely enraged” by it.
“What she has done is taken a lot from the few instead of taking a little from the many,” Mr Ó Cuív said.
He will be calling on Ms Burton to reverse it when he speaks on the bill today.
Meanwhile, Ms Burton moved to soften a change which would have seen the number of weekly PRSI contributions needed to qualify for a widow or widower’s contributory pension raised from 156 to 520.
It will now be 260 weeks instead of 520. The change will take effect from December 2013 and affect only new claimants.
Separately, Ms Burton has asked Fás to work with the local organisations that run community employment schemes to ensure they can survive cuts announced to training grants.
