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Major warning over €50 rise and €25 WEEKLY hike in key social welfare payments

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Major warning over €50 rise and €25 WEEKLY hike in key social welfare payments

CHILD Benefit payments should be increased by €50 per month and a new €20 weekly Cost of Disability payment must be implemented, it’s been warned.

And it’s been claimed ALL weekly social welfare payments must go up by €25 weekly in Budget 2025 to support hard-pressed households.

Social welfare payments must rise in next Budget, it’s been warnedCredit: Alamy

Social Justice Ireland has called for several increases including a €50 hike in monthly Child Benefit payments to aid with cost of living burdens as part of Budget 2025

Launching Budget Choices 2025, their budget package proposal, they said their must be a new focus on “closing income gaps and building resilient public services” in the next Budget.

The €140 Child Benefit payment is currently issued to parents of children aged up to 16 years, or 19 if they are in full-time education or have a disability.

There is also a recommendation for a €20 weekly cost of disability payment.

This would be a weekly payment separate from the 154 to €232 Disability Allowance, which is available to those over 16 with long-term health conditions whose working ability is affected.

The cost of disability payment aims to lower the rates of poverty and deprivation for those unable to work.

Launching the pre-budget recommendations, Social Justice Ireland CEO John McGeady said these measures would have long-term impacts.

McGeady said: “In advance of the general election, this Government should use its final Budget to close the income gaps which have opened as a result of temporary measures in last year’s budget. 

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“These measures, concentrated among welfare dependent households and low income workers, have seen income gaps widen which will have long term impacts. “

SJI Research and Policy Analyst Susan Rogers added:, “Vulnerable groups on fixed incomes must be prioritised in this Government’s last Budget.”

Rogers said: “Social Justice Ireland is calling on Government to increase core social welfare rates by a minimum of €25 per week in Budget 2025 and to commit to benchmarking social welfare rates to average weekly earnings.”

Minister Heather Humphreys discusses potential social welfare increases and Budget 2024 measures being implemented

Michelle Murphy, a Research and Policy Analyst with SJI, explained that their budget proposals would improve on the progress of Budget 2024.

She said the budget should focus on “investing in policies for the common good”.

‘LAST OPPORTUNITY’

Murphy said: “Budget 2025 needs to deliver this plan, one where these resources should be invested only in one-off projects to address deficits in our social and physical infrastructure.

“Government should allocate any additional windfall revenues to a Domestic Infrastructure Fund which should immediately begin to tackle deficits in our housing, energy, water and transport infrastructure.” 

Social Justice Ireland’s CEO concluded the launch with a warning that the Government have “one last opportunity to get this right”.

McGready said: “Resilient and adequately resourced public services and infrastructure will help us to manage the many changes that are coming and support people and communities during these transitions. 

“This Government has one last opportunity to get this right.”

BUDGET 2025 HINTS – WHAT WE CAN EXPECT

By ADAM HIGGINS, Political Correspondent

Taoiseach Simon Harris back in May said Ireland is not yet out of the woods when it comes to the cost-of-living crisis as he signalled there will be more one-off Budget bonuses.

He said: “In the coming Budget, we must ensure we provide the extra funding required to keep pace with the expanding population and a cost-of-living and welfare package that protects the most vulnerable.

“Income tax bands and credits must again be properly indexed so that people do not drift into the higher rate band of income tax.”

In recent years, the Government has handed out extra social welfare payments for people availing of supports.

And Harris said the Government knows that “a strong economy has to translate into tangible benefits for our people.”

He added: “Right now, I know people are still hurting.

“Cost of living increases have left them feeling their personal finances are insecure and might not withstand any further shocks. We need to give them a sense of security that the Government get this.”

Former Finance Minister Michael McGrath previously told how workers will cash in on major tax breaks as part of the Coalition’s last Budget.

Speaking at the Fianna Fail Ard Dheis in Dublin back in April, the Cork TD boasted about how this Government has reduced income taxes and cut the USC rate for the first time in five years.

He said his next Budget will target carers, pensioners, families and people with disabilities — a signal he plans to increase social welfare payments.

He also revealed Budget 2025 will include a major income tax package that will see workers keep more of their hard-earned cash.

He said: “In this autumn’s Budget, we will again have a substantial income tax package. This is vital for individuals and families, but it is also important for our economy that Ireland has a competitive personal tax system.”

The proposal includes millions worth of investment in children and families, which also includes the addition of qualified child payment.

As well as early childhood care and education, child protection and support for victims of Domestic, Sexual and Gender-based violence. 

There is also a €31million net package for housing, which would include ending the Help to Buy Scheme, on top of a €1.75billion investment of windfall in the construction of social housing.

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And SJI is calling on the Government to increase the Living Alone Allowance by €5 per week and reinstate the Bereavement grant.

They also pitched a Universal Basic Services and a Universal Basic Income Scheme for Carers in line with the Programme for Government Commitment to a Carers Guarantee.

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