Larger families hit hardest by child benefit cutbacks
A family with four children will be at least €432 worse-off a year as anticipated child benefit cuts swept through all sectors of society.
After maintaining payments for the first and second children, the Government announced monthly cuts of €19 per month for the third child and €17 for the fourth and subsequent kids.
Despite the reduction, Social Protection Minister Joan Burton said she believed Ireland remained strong on welfare rates even in the face of savings of €475m in her department.
“Even after the loss of our economic sovereignty, our core welfare rates remain generous by comparison with our nearest neighbours,” she said.
Calls have repeatedly been made for successive governments to adopt a means test for the child benefit payment but ministers have claimed it would be too cumbersome and costly.
The minister noted the huge difference between rates in Northern Ireland - €102.50 a month for the first child and €67.70 for additional children.
“I understand that these measures will have implications for some families but I must point out that families at risk of poverty will be more likely to benefit from supplementary child related payment such as child related increases to social welfare payments and the Family Income Supplement. Those payments remain unchanged,” Ms Burton said.
Children’s charity Barnardo’s warned that cuts to child benefits would push more families into poverty and deprivation.
Director of Advocacy Norah Gibbons described the cuts as mean and short-sighted.
“We understand that savings must be made but the combination of changes announced today will haunt families on low incomes for many years to come,” she added.
“Our children deserve more if they are to be given an opportunity to reach their full potential in life.”
Families with children aged over four will be hit even further with significant cuts to the school allowance for clothing and footwear.
Parents will lose €50 a year per child aged from four to 11, €55 per child over 12.
Families with four children aged 12 and over, for example, stand to lose €220 a year, on top of the €432 child benefit cuts.
Fianna Fáil TD Charlie McConalogue said the cuts, to child benefit in particular, made a mockery of Labour’s pre-election pledge to protect young people.
“This is another critical blow to families struggling to make ends meet and is a breach of trust by the Labour Party,” said Mr McConalogue.
He added that the child benefit cuts create poverty traps, work disincentives and increase the number of children in poverty.
People Before Profit TD Richard Boyd Barrett pointed out that children are the most obvious victims of the Budget, with the poorest families in particular being savaged at the expense of the super wealthy.
“Savaging the already vulnerable with these vicious cuts is going to further cripple our economy and claims that this Budget is going to help the country on the path to economic recovery are ludicrous,” he said.
Mr Barrett also condemned the Government for reducing the fuel allowance under its reforms to Social Protection.
Elderly people and other financially vulnerable members of society will lose some 120 euro a year through cuts to the allowance.
The fuel allowance season will be reduced from 32 to 26 weeks.
Ms Burton justified this cut, saying the season still covered Ireland’s coldest months.
“The fuel allowance was envisaged as a way of providing some additional support for those on long-term welfare payments during the winter season which clearly does not last for 32 weeks,” she said.
“By reducing the fuel season by six weeks, it begins to restore the core purpose of the payment as a winter fuel support.”
But Mr Barrett said she and Mr Howlin are putting lives in danger.
“I would ask how many deaths will Brendan Howlin and Joan Burton take responsibility for as cutting the fuel allowance season will do nothing to bring down the figures of people dying from cold related illnesses,” he said.
Meanwhile, part-time workers have also been targeted under the cuts.
While the payment rate of job seekers will be untouched, payment entitlement will be reduced and be based on a five-day working week as opposed to a six-day week.
This means part-time workers working two days a week will only be entitled to three days of dole payments as opposed to four days.
“This reform will mean that there will be a greater incentive for part-time workers on this scheme to return to full-time employment,” said Ms Burton.
