OPPOSITION PARTIES have accused the Government of unfairly targeting cuts at young families after new legislation was published to enact social welfare changes contained in the Budget.
The measures include scrapping the €1,000-a-year early childcare supplement, the doubling of health levy rates and the halving of welfare payments for unemployed teenagers.
The childcare supplement, which was paid to families with children under 5½ years of age, will be replaced by a year’s free pre-school for all three-to-four-year- old children.
This initiative is due to begin in January next year and will cater for an estimated 70,000 children.
Labour’s spokeswoman on social and family affairs Róisín Shortall TD yesterday criticised the Budget plans and said the measures were “disproportionately attacking young families”.
“It is difficult to see how family budgets can sustain this massive hit on household income and how this fits in to restoring consumer confidence and protecting jobs,” Ms Shortall said.
“The attention of the public has by and large been on the income levy but the early childcare supplement changes will actually cost most workers and parents much more.” She added that a subsidy towards pre-school would only fractionally off-set the substantial loss of income for these young families.
“It is also interesting to note that childcare costs for families continue to rise – up 6 per cent in the last year – yet there were no measures in the Budget to tackle prices and rental costs for providers in this area,” Ms Shortall said.
The Government says free pre-school places will allow resources to be invested in childcare much more efficiently, as well as saving the exchequer significant amounts of money. The plans to reduce new unemployment benefit claims under the age of 20 by half will see the jobseeker’s allowance cut from €204 a week to €100.
This will come into force for those who become unemployed after April 29th. Teenagers who are taking part in approved training or education courses, or those with children, will continue to receive the normal jobseeker’s allowance rate.
Minister for Social and Family affairs Mary Hanafin has said the new measures will provide an incentive for young jobseekers to avail of education and training opportunities. “If they do not improve their skills, they are at risk of becoming long-term unemployed from a young age,” Ms Hanafin said recently.
“They are considered to be at a greater risk of having difficulty securing a job than older jobseekers who might have low skills but at least have some work experience.”
However, Ms Shortall said the changes for teenage jobseekers had been been made without any guarantees on training and education opportunities.
“The Labour Party absolutely accepts that the very worst outcome for a young person leaving education is to immediately sign on the dole. However, you cannot cut income support if first there are not real opportunities in place for young people to pursue,” she said.
The legislation also raises the PRSI ceiling so that workers will pay the charge on all income up to €75,036 compared to €52,000 at present. The Social Welfare Bill 2009 is due to be debated in the Dáil next week and is likely to be enacted before the end of this month.