ICTU criticises lack of 'radical reforms'

Unions Unions were highly critical of the Budget, claiming it failed to tackle inequality and would leave many low- and middle-income families worse off.

Mr David Begg, general secretary of the Irish Congress of Trade Unions, said it was "too conservative in its approach to balancing economic prosperity and social fairness. It does not include the kind of radical reforms needed to tackle inequality and poverty."

The increases in social welfare and pensions would help people on low income. But the "small increases" in child benefit, the lack of assistance with childcare costs and the failure to take workers on the minimum wage out of the tax net was disappointing for low-paid workers, especially women.

"The failure to index personal tax bands, which will drive more workers into the higher tax band, will impact on middle-income earners, many of whom are already struggling to meet the cost of big mortgages and childcare arrangements."

SIPTU president Mr Jack O'Connor also described the Budget as "unnecessarily conservative".

"SIPTU is particularly disappointed at the failure to increase tax credits sufficiently to assist all workers, and make progress towards removing those on the minimum wage from the tax net."

He also criticised the failure to adjust the standard-rate tax band, which had increased the proportion of workers paying tax at the top rate, which was " directly at variance with the commitments in Sustaining Progress".

Mandate, which represents thousands of workers in the retail and bar trade, said Mr McCreevy had "once again" failed low-paid workers. It said it would insist on "the scandal of low pay" being addressed in the next round of social partnership talks next year.