Budget 2017: Leo Varadkar hails ‘socially just’ package

Budget 2017 was probably the first "fair and socially just" budget for a very long time, Minister for Social Protection Leo Varadkar has claimed.

Central to the Social Protection package is a €5 a week increase for the recipients of most weekly welfare payments, including those on State pensions, widows, lone parents, the disabled, jobseekers and those on “farm assist”.

Excluded from this increase, however, are the young unemployed. Already on reduced jobseeker’s allowance (JA) payments of up to €100 a week for those aged 18 to 24 and up to €144 per week for those aged 25, they will see increases of just €2.70 and €3.80 a week respectively. Those aged 26 and over will see their payment of up to €188 a week go up €5.

“Everyone gains about 0.6 to 0.8 per cent, so it is modest, but those who gain the most in percentage terms are those in the bottom 10 per cent,” said Mr Varadkar. “So this is very much a fair and socially just budget and probably the first we’ve had in a very long time.”

Best solution

However, the decision to exclude the young unemployed from getting the €5 increase has been branded as “mean” and “very disappointing” by groups working with the sector .

It would "send a message to young people that Government does not value them like they value those who are older", said Pat Doyle, chief executive of the Peter McVerry Trust.

In response, the Minister said the best solution for young jobseekers was to go back into education or find work. “There are lots of jobs now available in our economy and lots of training places,” he said.

The back-to-education allowance for the under-26s is being increased from €160 to €193, while the contribution those on rent supplement have to make towards rent is being reduced from €30 to €10 for 18- to 24-year-olds and to €20 for those aged 25.

Other measures include an increase in the earnings “disregard” for lone parents whose youngest child is 14 or under, from €90 a week to €110; a restoration of PRSI-related benefits, including dental, optical and grants for hearing aids; an expansion of the school breakfast scheme beyond Deis schools; and 500 additional places for the rural social scheme, which is targeted at low-income farmers.

Asked why he had not increased the back-to-school clothing and footwear allowance paid to the poorest families, Mr Varadkar said he had “really wanted to” but was unable to find the money. “It would have cost €10 million,” he said. “It’s something I intend to come back for.”