Income gap between rich and poor widens - study

Budgetary decisions taken by the Government over the last four years have increased the income gap between the rich and poor by £159 per week, according to a study published today.

The justice commission of the Conference of Religious in Ireland took into account pay increases, tax reductions and rises in social welfare increases in making their calculations.

It found that during the lifetime of Bertie Ahern’s Government the rich/poor divide had widened ‘‘substantially’’, with single people on £40,000 a year gaining £159 a week more in their disposable income than long-term unemployed people.

The commission also took into account the Government’s new special savings incentive scheme, which the state pledges to top up by 25% at the end of five years in a bid to encourage saving.

But it described the scheme as ‘‘beyond the reach of Ireland’s poorest people’’.

Considering take-home pay, the report found long-term unemployed couples are £32 a week better off than they were four years ago, while couples with one income on £40,000 a year are £157 a week better off.

In a statement, the commission said: ‘‘Despite having abundant resources available to ensure poverty and social exclusion was finally eliminated, the Government has chosen instead to favour the better-off, thus widening the rich/poor gap substantially.

‘‘The Government’s record over the past four years has been far from effective in tackling poverty and social exclusion.

‘‘Widening the gap between the better off and poor is unfair, unjust and bad for social cohesion.’’