Róisín Shortall (Dublin North West, Labour)

I am asking the Minister to clarify those points.

The universal social charge also impacts significantly on the attractiveness of work for people on welfare. For most people on jobseeker's payment, the effect of the universal social charge is to worsen replacement ratios and increase poverty traps when they are taking up low-paid work. The situation is made noticeably worse for people taking up employment that pays less than €26,000 per annum. The drop in the rate of supplementary welfare allowance also reduces the amount of rent supplement a person can claim when moving into employment. Add to this the proposed cut in the minimum wage and the budget is a cocktail of measures that impinge significantly on work incentives for people who are on welfare and considering moving. The Minister talks about encouraging people to move off welfare and into work, but the cocktail of measures contained in the budget will discourage people from doing that.

The abolition of the long-standing poverty trap associated with the health levy threshold of €500 per week is to be welcomed. However, the universal charge has created another poverty trap at €4,004. Part-time workers on low wages, such as cleaners or security workers, will face a very high marginal rate of tax once their income rises above this level. This does not make any sense.

Of course, the biggest poverty trap is caused by the requirement that those in receipt of rent and mortgage interest supplement not work more than 29 hours per week. This remains untouched. I cannot understand the sheer lack of will to tackle this issue.

The actions of Deputy Jackie Healy-Rae are particularly appalling. As Chairman of the Joint Committee on Social Protection, one would expect his role to be predominantly about protecting the poor in the budget.

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