Joan Collins (Dublin South Central, People Before Profit Alliance) | Oireachtas source

The Minister and the Labour Party have repeatedly claimed that they have protected core welfare payments. The Minister did so again today, claiming that the basic rates of core payments would not be changed. This is a narrow interpretation and does not stand up to scrutiny. I presume that, for a Labour Minister, the core welfare payments are the jobseeker's benefit and allowance, the old age pension, disability and illness benefits, the lone parents benefit and carer's allowance. I will leave child benefit aside for now.

The failure to increase rates in line with inflation represents a real cut. Substantial increases in energy costs impact more severely on those on low incomes. Yesterday's announcement of a sharp increase in public transport prices will also most affect people on low incomes.

There has been a direct cut in the basic rates of jobseeker's allowance for 22 to 25 year olds. Is this not a direct cut in core payments? One cannot differentiate between those aged over and under 25 years. There has been a reduction to nine months in the length of time over which one can claim this allowance. This is a cut to benefit entitlements. Part-time workers' entitlements have been changed from six days to five days. The change in the entitlement to the old age pension is also a cut. The Minister has increased the pension age as well as the number of stamps required for contributory pensions.

The Minister's claim is empty. It is a pretence. In reality, her budgets have targeted the most vulnerable. Under this Administration, not a single welfare payment has not been cut and not a single entitlement has not been restricted or reduced. The Government and the Minister in particular like to dress up benefit cuts in job activation measures. Cuts in the benefits for young people are a blatant attempt to force them into low-paid, precarious employment, but even those jobs do not exist.

The decision to continue the reduction in the earnings disregard for lone parents is a cut, as are the removal of the one-parent family tax credit and the discontinuation of training allowances for lone parents. How are these cuts meant to encourage lone parents into work?

Labour will undoubtedly claim it was successful in limiting welfare cuts to €290 million. In reality, these cuts could have been avoided. Deputy Burton is the Labour Minister of the Department of Social Protection. A 0.5% wealth tax would raise €250 million. She had that choice, but she failed to make it. The Nevin Economic Research Institute, NERI, and TASC support this figure conclusively.

I cannot conclude without addressing the cuts in the telephone allowance and maternity benefit. I am opposed to both cuts and have tabled amendments to the Bill. I congratulate our pensioners who came out in their thousands on Tuesday.

See this speech in context