Joe Costello (Dublin Central, Labour)

A second budget in a single year is virtually unprecedented. Likewise a second Social Welfare Bill is virtually unprecedented, especially coming after the pensions levy that was imposed earlier this year. Two budgets and a pensions levy have stripped the taxpayer of a huge tranche of income in the past six months. One would have expected the Social Welfare Bill to go in the opposite direction and enhance the entitlements of social welfare recipients, the less well off, the unemployed, senior citizens and the children of the nation. However the opposite is the effect of the Bill. Either there is a reduction or a loss of social welfare entitlements or a few miserable crumbs are thrown in the direction of the growing legions of the unemployed.

The PRSI earnings ceiling is increased by 50% for employees. The jobseeker's allowance, supplementary welfare allowance schemes and the early child-care supplement are all addressed in the Social Welfare Bill in a negative way. There is a direct attack on young people who become unemployed by reducing their jobseeker's allowance to €100 per week, half what an adult over 20 is entitled to. The early child-care supplement is more than halved to an annual €498 from 1 May 2009 and will be abolished on 1 January 2010. There is an increase in the rate of the health contribution as well as a lowering of the earnings threshold. Earnings emoluments and income are all aggregated for the purpose of calculation of the contribution. What a mean and miserable series of amendments to the social welfare code are contained in this Social Welfare Bill.

Unconscionably, mortgage interest relief for hard-pressed families, is abolished after seven years. The minimum contribution to rent supplement by a tenant has increased by a third in this budget, having already been increased in the previous budget in October. At the same time all existing rent supplement payments have been reduced by 8% on the somewhat questionable expectation that landlords will voluntarily decrease their rents. What will happen if landlords do not do so? What will the community welfare officers do about that? What instructions will the Minister give to ensure people are not evicted or become homeless? The Minister cannot just rely on the good will of landlords to reduce their rents in accordance with the provisions of the Social welfare Bill. It just does not happen like that in the real world.

The unkindest cut of all is the abolition of the Christmas bonus double payment for all social welfare recipients. This was the little bit extra that provided some cheer for hard-pressed families and allowed presents to be purchased for children to make Christmas a memorable time. It also provided senior citizens with that bit extra that helped provide a welcome buffer against increased heating bills, food and medical costs and a present for the grandchildren. Scrooge will once again stalk the family homes this Christmas. I received an e-mail on the matter from the Irish Senior Citizens Parliament and of course it will be discussed later in Private Members' time. It is more than 50 years since the Christmas bonus was introduced in 1955, particularly to benefit old-age pensioners. Naturally the Irish Senior Citizens Parliament is disgusted that such a measure should have been rescinded in the budget.

The security scheme for the elderly has been suspended by the Minister.

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