Simon: Income levy will hit low-income earners hardest

The Simon Communities of Ireland have expressed disappointment at today’s Budget announcement, and said the measures it contains will disproportionately impact on the poor and those on low incomes.

Patrick Burke, Chief Executive of Simon, said: "We would have liked a more targeted and equitable Budget. The universal 1% income levy on all earners will disproportionately affect lower-income earners.

"In addition, the VAT increase will have the greatest effect on those who are most vulnerable in society.

"There is a huge difference between what somebody on a salary of €90,000 can afford, compared to somebody on a salary of €20,000.

"We believe the VAT increase and income levy will hit those on the lowest incomes hardest."

Simon also expressed concern at the announcement that a levy of €200 will be imposed on non-principal private residences.

According to Mr Burke, it is likely that tenants in private rented accommodation will face rent hikes from landlords looking for ways to meet this additional cost. This is of particular concern for those at the lower end of the private rented market.

Simon noted there has been a decrease of €0.08bn in the overall housing budget, and said it was imperative that the Government invests the reduced funds in a way that ensures housing targets are still met.

"In the current climate, house prices have fallen sharply," said Mr Burke.

"This means that - even though the Government has reduced this Budget - it should be able to achieve better value for the money available than it might have done in previous years.

"Despite the reduction in the housing budget, it is essential that the Government sticks to agreed targets and meets its commitment around social housing. Social housing and private rented accommodation are two of the range of options which must be available to assist people in moving, and remaining, out of homelessness.

"The top-line figures presented today do not give sufficient indication of the funding available for homeless services moving forward: the devil is in the detail. Simon will be issuing a more comprehensive response once the required detail becomes available."