Thousands face 'perfect storm of hardship' if pandemic supports lifted too soon

The moratorium on energy disconnections will be lifted on Tuesday.

A perfect storm of problems and hardships is on the way for thousands of people as supports put in place during the pandemic are removed, one of Ireland's largest charities has predicted.

Over the coming days and weeks, the moratorium on energy disconnections will be removed and the Pandemic Unemployment Payment (PUP) will be wound down.

The "lack of joined-up thinking" behind these decisions will see individuals and families around the country who are already struggling faced with more problems, St Vincent de Paul (SVP) has said.

Dr Tricia Keilthy, SVP head of social justice, said the initial Government response to the financial impact faced by people because of the pandemic had prevented the worst shocks on households.

She warned, however, that removing them too quickly would cause problems.

Moratorium on energy disconnections

The moratorium on energy disconnections will be lifted on Tuesday, which the SVP believes is too soon as many people remain out of work.

The Commission for Regulation of Utilities (CRU) said it chose June 1 because energy consumption is typically lower in the summer months, providing "further scope for customers to engage with their suppliers and help to bring any arrears to manageable levels".

The SVP is calling on the Government to step up in terms of financial support while suppliers are asked to look at debt relief and more flexible payment options for customers.

Tánaiste Leo Varadkar has confirmed that the PUP won't begin to be phased out until at least September, possibly late October.

However, the payment will be closed off to new entrants down the line as Mr Varadkar said "at this stage, very few people who are losing their jobs now are losing them as a consequence of the pandemic".

Minister for Social Protection, Heather Humphreys, has assured there will not be a cliff edge of pandemic income supports at the end of June but the SVP said the Government needs to "poverty-proof" the unwinding of supports.

Financial hardship

The charity said supports should be tapered towards those most at risk of financial hardship including low-income families with children, renters and workers in sectors that will be slower to recover.

It is also calling for a joint budget line between the Department of Social Protection and the Department of Housing to help households with rent arrears.

The blanket moratorium on evictions was lifted last month and the continued protection in place until July only applies to those financially affected by Covid-19 and those registered with the Residential Tenancies Board.

The SVP has warned of the danger of an increase in homelessness as many households don't meet these criteria and are at danger of falling through the cracks.