I move:
That Seanad Éireann, noting that as a consequence of the Estimates for 2004
– Back to Education Allowance is all but abolished at third level
– Conditions for the Rent Supplement are to be severely curtailed and restricted
– Crèche supplement for childcare will be discontinued
– Earnings threshold for Disability and Unemployment Benefit will go up and
– Duration for Unemployment Benefit payments will be reduced,
condemns this assault on the living standards and educational opportunities of the most disadvantaged in our society.
I welcome the Minister for Social and Family Affairs, Deputy Coughlan, to the House. The Book of Estimates characterises an ugly prevalence in terms of governance here since last year. I believe strongly, as many people do, not least the organisations which represent the worst off in society, that the Book of Estimates, as presented by the Government, demonstrates disregard for those who are less well off in our society. This highlights what is becoming a well believed statement, that if one does not belong to the golden circle or if one is not part of the K Club or part of the circle of those who live around it, one is not even worthy of merit in the form of support from this Administration.
When the spate of public sector cutbacks was initiated, it was predicted that their impact would be remarkably negative on those who are less well off. It is those people who will suffer at the hands of the apostles of fiscal rectitude. We do not need to name the main apostle in terms of that category but he is ably supported, unfortunately, by many more around the Cabinet table. The person who was Minister for Social Welfare in 1992 introduced a number of cuts that were called the dirty dozen, which lived up to their name. However, just as we have witnessed massive advances in technology and in many other areas in western society in recent years, we have also witnessed, unfortunately, a bigger, more cruel type of monster emerging from the shadows of the dirty dozen. We can christen that monster, the "savage 16" because what we saw last week was nothing short of barbaric and savage.
I will go through the savage 16 cuts. Social welfare recipients must be on welfare for 15 months rather than six months to qualify for the back to education allowance at third level. Lone parents will be refused the transitional half rate social welfare payment to ease the break from welfare when they take up employment and earn in excess of €293 per week. Recipients of supplementary welfare allowance or rent or mortgage supplement must pay at least €13 instead €12 towards their accommodation before qualifying for these allowances. Supplementary welfare allowance will not be paid any longer to a household where one member is in full employment. If one of a couple is working, both will be excluded from rent allowance or mortgage supplement.
Health boards can now refuse rent supplement to someone who is not already renting for six months unless that person is homeless or where there are other compelling reasons. Rent allowance claimants will be referred to the local authority for assessment of housing need in a more systematic manner rather than applying to the Department of Social and Family Affairs. Having regard to these cuts, it is appropriate that when that Department was renamed, the word "community" was removed. Rent allowance will no longer be paid to people who refuse an offer of a local authority house or who leave such housing without reasonable cause. A supplement given to recipients of supplementary welfare allowance who have been supported by the Money Advice and Budgeting Service in brokering a deal with creditors it to be discontinued.
The crèche supplement which assists in covering the cost of emergency child care is to be abolished. The diet supplement, which is paid to people with special dietary needs, such as coeliacs, is to be phased out over a number of years. The entitlement to the half rate child dependant allowance in respect of unemployment benefit and disability benefit claims will be discontinued where the claimant's spouse or partner has a gross weekly income in excess of €300. The current weekly earnings permitted to claim the reduced rates of disability and unemployment benefit has been increased from €88.80 to €150. The entitlement of new claimants to the half rate payment of disability and unemployment benefit where the recipient is already in receipt of widow's or widower's pension or the one parent family payment will be discontinued. The maximum duration of unemployment benefit will be reduced from 390 days to 312 days where a person has less than 260 PRSI contributions paid since first entering employment. The number of paid PRSI contributions required for qualification for disability, unemployment and health and safety benefit has been increased from 39 since first entering insurance to 52. The 16th cut is an increase in the period where claims for unemployment benefit and disability benefit are linked to a previous claim from 13 to 26 weeks.
One does not have to study these cutbacks in any great detail to know they are savage. It amounts to a massive retrograde step by the Government. There has been some deliberation as to whether one of them amounts to a cutback, but it does.
I have great difficulty with the language used to justify some of these measures, particularly the term "disincentive to employment". No one decides to give up a job. People lose their jobs when their place of work shuts down. Given the way the economy is going, people have no choice if they are out of work. There is no disincentive to employment. It is unfortunate and regrettable, but one cannot blame those who have lost their jobs.
A 2% increase in the capital gains tax to 22% would result in no cutback on rent allowance.