Oireachtas Joint and Select Committees
Wednesday, 19 October 2022
Committee on Budgetary Oversight
Post-budget 2023 Examination: Discussion
Ms Colette Bennett:
On the idea that the budget does not go far enough, which it does not, the committee made recommendations on benchmarking shortly before the budget was announced. We would be very much in favour of setting the benchmark at the equivalent of the 2007 benchmark, which would currently be 27.5% of weekly earnings. We believe it should be phased in. Our pre-budget proposal was €20, and it continues to be after the budget, as a move in the direction required. It should come to an increase of €34 on €208. We are continuing to call on the Government to revisit the decision made in budget 2023 and make up the difference, that is, add another €8 to bring the figure to the €20 that we and others have called for. What we are dealing with is genuine income inadequacy. This is not something that is going to go away with short-term measures or universal measures in terms of those who not targeted with the energy credit. We need to address the poverty issue, and that is an income-adequacy issue.
Regarding the rich–poor barometer, the rich are those who are earning €100,000 per year, compared with those in social welfare. There is also a middle poor, who comprise those on €40,000 per year, compared with those on social welfare.
Thus the rich-poor weekly gap is a difference of €979 per week. That has increased since last year. The middle-poor gap is €572 and has been the same since 2018. That is the difference we are talking about when we refer to people who are on the poverty line or on very low incomes. This information is on page 9 of our budget analysis.
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