ACROSS-THE-BOARD commitments to a fair sharing of fiscal pain and protection of the most vulnerable are becoming lost in the public hubbub as disparate groups within social partnership promote their particular interests. There is nothing wrong with special pleading but social solidarity and a civilised approach require that the needs of the least-well-off are given precedence.
Organisations dealing with homelessness, Focus Ireland, the Simon Community, the Society of St Vincent de Paul and Threshold, have called on the Government to resist the temptation to make further cuts in rent supplement payments in the coming Budget. Such a move, they warn, would drive more people into homelessness. And that situation, in terms of a growing number of people sleeping rough and being unable to cope with the impact of unemployment, is already dire.
Ireland has the unhappy distinction of being one of the most unequal societies in the developed world. Our taxation system is inequitable. One-in-six of the population is at risk of poverty and one-in-five members of the workforce lacks functional literacy skills. The recession saw the number of people claiming rent supplement payments rise from 60,000 to 90,000 in the past two years. The cost has jumped by nearly €100 million per annum. As might be expected, the Government sought to make savings in the last budget by cutting payment levels by 10 per cent. It also increased the personal contribution required from each claimant by €10 a week.
The Government justified its actions on the grounds that public spending had to be reined in and that rents were falling in the private sector. Rents were, indeed, falling but not for those vulnerable people who had signed leases or were not in a position to negotiate a better deal. It is important to remember that rent supplement is paid to the tenant, not the landlord. Some property owners are reluctant to accept such clients. And because they are catering for the lower end of the market, downward price pressure is minimal.
Most people now accept that livings standards are likely to fall further. For some, that will be a manageable proposition. For others, it will be extremely painful. But for those unfortunate individuals and families living on the brink of homelessness, be it in rented or mortgaged accommodation, it could be catastrophic. That is why special consideration should be accorded to the long-term consequences of any rent supplement changes when Ministers meet to devise the Budget.