Gap between rich and poor 'unacceptably high'

The gap between rich and poor is unacceptably wide and growing and needs to be bridged urgently, the Minister for Social and …

The gap between rich and poor is unacceptably wide and growing and needs to be bridged urgently, the Minister for Social and Family Affairs, Mr Brennan, said yesterday.

He was speaking at the publication of a review of progress being made in implementing the national action plan against poverty and social exclusion.

Facilitating the move from welfare to work was crucial in helping people to lift themselves out of poverty, the Minister said.

"The gap between those of us with jobs, who are able to benefit from solid wage increases year on year, and those on welfare, who aren't in a position to do so, is getting unacceptably wide," he said, noting that while progress has been made, there is much road to cover.

READ MORE

The national action plan on poverty arose from an EU commitment made in 2000 to make a decisive impact on the eradication of poverty by 2010. Each member- state undertook to produce action plans for social inclusion which would be reviewed annually.

The first review of the plan, conducted by the newly-established Office for Social Inclusion, points to progress made in many areas but highlights the gap in spending on some aspects of social inclusion between Ireland and other EU member-states.

Figures show the State's spending on social protection is just 61 per cent of the EU average. In the area of disability, it is just 39 per cent of the EU average and in old age it is 28 per cent.

However the report says much of this discrepancy can be explained by demographic differences and indicators used in the calculations.

The report also notes that older people have less comprehensive pension cover in Ireland than in many other EU countries as the State does not provide cover for supplementary earnings-related pensions under social insurance.

Mr Brennan said ensuring that the income of people dependent on social welfare kept adequate pace with wider pay increases would help narrow the gap.

"We must work more to help people better reconcile work and family life. In this way they can improve their standard of living for themselves and their children, while at the same time being able to ensure their children receive the care and the parental time they need," he said.