Howlin defends Budget cutbacks
Minister for Public Expenditure Minister Brendan Howlin has defended the cutbacks he announced today, saying that he is aware of their consequences on people.
Minister Howlin also defended his cutting of redundancy rebates, saying the taxpayer should not incentivise people to lose their jobs.
Cuts to child benefit for the third and subsequent children, a €250 hike in student registration fees, the suspension of the winter fuel allowance for six weeks of the year, increases in school transport charges and abolishing the Back to School Allowance for two- and three-year-olds are some of the measures announced today.
In total, Minister Howlin announced cuts of €1.4bn from current spending, as well as a €750m reduction from the capital plan.
Another measure announced today was to cut the rebate on redundancy payments for employers from 60% to 15%, as soon as the legislation can be prepapred.
Minister Howlin defended the move, saying the taxpayer should not incentivise companies to make people redundant.
He also described as "extraordinary" claims by Fianna Fáil that this could lead to a suddern raft of redundancies from employers in order to get the higher payments.
Some of the more hard-hitting social welfare cuts include changes to child benefit.
While payments for the first and second child remain the same, the monthly rate for a third child falls from €167 to €148, while for the fourth and any subsequent children it is being cut from €177 to €160.
Minister Howlin said: "The sharp reality that this Government is facing is that the level of social welfare expenditure now in place cannot be sustained from the funding base now available. As unpalatable as it might be, we must make some difficult choices in order to contribute to the reduction of the budget deficit."
The Government will not reduce any weekly rate of social welfare payments, he said.
