INOU: Poor are being asked to pay for Celtic Tiger failings

The Irish National Organisation of the Unemployed have said that the poor are being asked to pay for the economic crisis after the publication of An Bord Snip's report yesterday.

Amongst the many recommendations made to Government in the report are a 5% cut in Social Welfare rates, reductions in Rent Supplement and an end to 'double payments'.

"What is so striking about the recommendations,” said John Steward, Co-ordinator with the INOU, "is how much the less well off in Irish society are being asked to pay for the failings of the Celtic Tiger."

Many welfare recipients have seen their cost of living rise over the past year, according to the organisation.

"Most welfare recipients in receipt of Rent Supplement have seen their rental costs increase between €15 and €20 per week," said Bríd O’Brien, Head of Policy and Media with the INOU.

"It is vitally important that the Government maintain existing social welfare rates otherwise people will find it increasingly difficult to make ends meet,” she concluded.

In April’s Budget Jobseekers Allowance levels were cut for 18 and 19-year-olds from €204.30 pw to €100 pw.

In An Bord Snip Nua’s report they recommend that 20 to 24 year olds get a reduced rate of €150 pw.

"It strikes us as extraordinary that seven years after you are old enough to vote, you will only then be seen as old enough to get a full ‘adult’ welfare payment,” said Mr Steward.

The INOU has called for the maintenance of the focus of Community Employment (CE) on disadvantage.

The call in this report to abolish what they call 'double payments', will have a negative impact on the participation rates of lone parents and disabled people on CE.

The current arrangement, that allows lone parents and disabled people to maintain a portion of their welfare payment, supports their involvement by covering additional participation costs like childcare and transport.