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Irish Examiner
03-06-2025
- Business
- Irish Examiner
Income gap widened significantly under previous Government, new report finds
Income inequality rose sharply during the previous Government's term, according to a new report. Over the course of the five budgets introduced by the coalition, the gap between rich and poor widened by €963 a year, or €18.45 a week. In contrast, the gap between middle-income and low-income households narrowed by €204 annually, or €3.92 weekly, according to analysis by Social Justice Ireland. This narrowing was driven by the 'skewed nature of income reduction choices,' which the report said favoured higher earners and offered relatively little to low-income workers paying income tax at the standard rate over the five years. The divide between rich and poor grew significantly in 2025 due to the end of most temporary cost-of-living supports and substantial income tax cuts for wealthier households. Temporary measures in Budget 2025 were primarily targeted at welfare-dependent households and low-income workers. For example, these measures represented 47–62% of income gains for pensioners, but only 11–16% for couples earning over €100,000. Once temporary supports—such as electricity credits and one-off welfare payments—expire, the impact of permanent measures will persist and further widen income inequality, the Tracking the Distributive Effects of Budget Policy – 2025 Edition report said. Low-income workers earning between €30,000 and €40,000 a year—just above minimum wage—gained little from income tax changes, as their earnings were below the thresholds for most reductions. Households earning below the standard income tax threshold benefited least from Government measures between 2020 and 2025. During this period, weekly income gains ranged from €3.34 for couples earning €30,000 to €110–€120 for couples with incomes above €100,000. "Overall, our results suggest that budgetary policy over recent years has reduced the gap between people/households of working age in the bottom and middle of the income distribution while opening a greater gap between them and those with the highest incomes," said Research and Policy Analyst with Social Justice Ireland, Michelle Murphy. "Social Justice Ireland regrets that policy outcome, as a society we can ill afford to see the incomes of those with the most resources drift further away." Ms Murphy said the decline in the relative position of low- and middle-income households paints a troubling picture, where much of the progress made on income equality risks being undone by recent policy decisions. "Looking ahead, reversing these growing income gaps will pose important challenges for future budgetary policy of the new Government particularly as it prepares for its first budget," said Ms Murphy. "The commitment to run progressive budgets in the programme for government is the context in which these income gaps must be addressed." Social Justice Ireland continues to advocate for refundable tax credits as a fairer way to support low-income earners. Read More Only 60 of 4,800 dangerous driving reports to online Traffic Watch system result in a fine
The Irish Sun
23-05-2025
- Politics
- The Irish Sun
‘Crucial' €50 Child Benefit hike alert with €190 ‘more money in pocket' Budget 2026 demand after 9 years of no increases
IRELAND'S monthly €140 Child Benefit payment must be hiked by €50 to address alarming levels of child poverty, a think tank has said. The universal payment, which is of particular value to the thousands of Irish families struggling on the lowest incomes, has not been increased since 2016. Social Justice Ireland last year And the independent think tank today confirmed it will again be asking for a €50 increase in the universal payment rate in Budget 2026. Susanne Rogers, a Research and Policy Analyst with the organisation, told The Irish Sun: "Social Justice Ireland will be calling on the government to introduce a higher payment rate of "The rapid increase in prices in the past few years has posed particular challenges for low-income households throughout Ireland. READ MORE IN MONEY " Last year, the government set itself a mission to tackle child poverty, but Rogers has pointed out that hundreds of thousands of Irish children are still living in households experiencing poverty. Figures published in the CSO SILC data revealed that just over 844,700 people Rogers said: "Child Benefit hasn't been increased since 2016 despite MOST READ ON THE IRISH SUN "A €50 increase is required in Child Benefit to address Ireland's level of child poverty." Minister Heather Humphreys backs quadrupling child benefit payment The increase would mean Social Justice Ireland also said the The cash is an extra amount for a child provided to parents who are already on social welfare. The payment is currently €50 at the full rate for children under 12 and €62 at the full rate for children who are aged over 12. INFLATION IMPACT ON POORER HOUSEHOLDS Rogers explained: "Fundamentally, child poverty cannot be separated from the poverty experienced by the families to which children belong. "Had Government been serious about tackling child poverty, it would have addressed income adequacy, housing, education and health." The expert also explained that, although the CSO shows all households are experiencing significant price increases, the impact of inflation is greatest for the bottom 20 per cent of people. She said: Given that these lower income households spend a greater proportion of their income compared to better off households, they have been more exposed to price increases. "They also spend a greater proportion of their income on areas that experienced significant price increases like food, housing and energy." CHILD BENEFIT PAYMENT DATES CHILD Benefit will be paid out six more times before the end of the year. The universal cash is typically paid out on the first Tuesday of each month, but may be paid out earlier at times due to bank holidays. 3rd June - may be paid early due to June Bank Holiday 1st July 5th August - may be paid early due to August Bank Holiday 2nd September 7th October 4th November And Rogers said that measures targeting households impacted most by inflation are necessary to reduce child poverty, with Child Benefit being "of particular value to those families on the lowest incomes". She explained: "Our long-standing failure as a society to adequately engage with the issue of child poverty, and drive substantial and permanent reductions in it, is building long-term problems. "Given the slow and limited progress achieved by many previous anti-poverty strategies, it is crucial that anti-child poverty ambitions translate into actual measures that put more income in the pockets of poorer families and make the public services they rely on more readily available and more affordable. "Child poverty is essentially an issue of low income families and child poverty solutions hinge on issues such as adequate adult welfare rates, decent rates of pay and conditions for working parents, and adequate and available public services. "Child benefit also remains a key route to tackling child poverty." 1 Child Benefit is currently €140 per child each month Credit: Getty Images
The Irish Sun
18-05-2025
- Business
- The Irish Sun
Thousands warned amid major social welfare payment schedule shake-up coming in DAYS
THE Irish public is set to see a major social welfare shakeup in days, with thousands set to be impacted. Thousands are set to be impacted by the June Advertisement The bank holiday Monday falls on June 2 and people will see a change to their Due to the bank holiday, This means that anyone who was expecting to be paid on Monday will most likely be paid early. It's expected that people will see the payment in their account on Friday May 30. Advertisement READ MORE IN MONEY The payment schedule will then go back to normal on Tuesday June 3. The shakeup will also impact anyone who is set to be paid the New Baby Grant on June 6. This grant is paid on the same day as Child Benefit, which is the first Tuesday of every month. It comes after it was recommended that Advertisement Most read in Money This would mean vital payments such as BENCHMARK A new report from Social Justice Ireland indicates that the average weekly earnings for households across the country is €968.25. The National Social Monitor report found that 30 per cent of Gross Average Industrial Earnings is equivalent to 27.5 per cent of the new average earnings data being collected by the CSO. This figure has been claimed to be the benchmark for "minimum social welfare payments and reflects a continuation of the previous benchmark using the current CSO earnings dataset." Advertisement And, as 27.5 per cent of average weekly earnings currently sits at €266.27, there is a shortfall of just over €22 between the minimum social welfare rates being paid in 2025 and the average earning of households across Ireland. The report stated: "By the end of 2024 average weekly earnings equalled €968.25. "Taking this as the starting point for earnings in 2025, we can determine that the updated value of 27.5 per cent of average weekly earnings equals €266.27 implying a shortfall of just over €22 between the minimum social welfare rates being paid in 2025 - €244 - and this threshold." PAYMENT INCREASE Speaking to The Irish Sun, Susanne Rogers, Research and Policy Analyst, said payments needed to be increased to ensure those relying on social welfare are not "falling behind" others in society. Advertisement She said: "According to our calculations, if core social welfare rates were bench marked at 27.5 per cent of average earnings, the payment would currently be €266 a week, not €244 a week. "This level would mean that those relying on social welfare for all or part of their income would not be falling further behind the rest of society. "Every household in the country has seen their bills increase for the essentials - food and energy in particular. "Low income households however, have stark choices to make between those essentials when costs rise and income doesn't. The heat or eat response." Advertisement 1 Thousands will see a shakeup in payments Credit: Getty Images - Getty
The Irish Sun
15-05-2025
- Business
- The Irish Sun
New €266 weekly social welfare pay increase alert for Irish households amid ‘falling behind' warning after bill spike
CORE social welfare payments should be hiked to €266 each week to prevent Irish households from "falling behind" the rest of society, a think tank has said. This would mean vital payments such as Advertisement A new report from Social Justice Ireland indicates that the average weekly earnings for households across the country is €968.25. The National Social Monitor report found that 30 per cent of Gross Average Industrial Earnings is equivalent to 27.5 per cent of the new average earnings data being collected by the CSO. This figure has been claimed to be the benchmark for "minimum social welfare payments and reflects a continuation of the previous benchmark using the current CSO earnings dataset." And, as 27.5 per cent of average weekly earnings currently sits at €266.27, there is a shortfall of just over €22 between the minimum social welfare rates being paid in 2025 and the average earning of households across Ireland. Advertisement READ MORE IN MONEY The report stated: "By the end of 2024 average weekly earnings equalled €968.25. "Taking this as the starting point for earnings in 2025, we can determine that the updated value of 27.5 per cent of average weekly earnings equals €266.27 implying a shortfall of just over €22 between the minimum social welfare rates being paid in 2025 - €244 - and this threshold." Speaking to The Irish Sun, Susanne Rogers, Research and Policy Analyst, said payments needed to be increased to ensure those relying on social welfare are not "falling behind" others in society. She said: "According to our calculations, if core social welfare rates were bench marked at 27.5 per cent of average earnings, the payment would currently be €266 a week, not €244 a week. Advertisement MOST READ ON THE IRISH SUN Exclusive "This level would mean that those relying on social welfare for all or part of their income would not be falling further behind the rest of society. Little known social welfare benefits thousands are entitled to "Every household in the country has seen their bills increase for the essentials - food and energy in particular. "Low income households however, have stark choices to make between those essentials when costs rise and income doesn't. The heat or eat response." She added that the Advertisement She said: "Government must commit to bench marking payments so that those households are afforded an income level that provides for a basic but decent standard of living. "Government has anti-poverty commitments in both the Roadmap for Social Inclusion and the Sustainable Development Goals and cannot hope to meet them unless core welfare rates are addressed." CHILD BENEFIT When it comes to She explained: "Government has recognised and responded to the damage done to children who experience poverty by introducing the Child Poverty and Well-Being Programme Office. Advertisement "So as well as ensuring adequate levels of household income, housing would be the number one ask! Every month sees new record homelessness figures, many are children. "Universal access to childcare is also vital for families." COST OF LIVING LATEST THE Taoiseach has signalled at an increase in social welfare payments and tax cuts after being slammed over the planned end to cost-of-living boosts. But Micheal Martin again ruled out a specific repeat of the €2.6 billion cost-of-living package unveiled in Budget 2025. The package - the Yesterday, after facing stinging criticism from the opposition over the planned end to the Responding to He declared: "Our agenda and objective in the budget, when it comes in the autumn, will be again to provide within the social protection payment programme and in terms of taxation, to do what we can to alleviate the pressures on people." Susanne added that there is currently an under investment in early Among three to five-year-olds, in the Organisation for Economic Co-operation and Development, Ireland now has the third lowest amount of expenditure at 0.3 per cent of GDP. Advertisement She said: "One of the key challenges identified towards the provision of universal early childcare in Ireland is the market driven approach to provision at present. "High staff turnover and poor pay and conditions are also a feature of the sector. 'First 5: A Whole of Government Strategy for Babies, Young Children and their Families' contains welcome high-level policy commitments and strategic actions to improve the lives of babies and children and their families. LONG-TERM PLANNING NEEDED "The Programme for Government also contains commitments on childcare and early years education. "In order to deliver on these commitments for all children having access to safe, high-quality, developmentally appropriate early childhood education, long-term planning and sufficient resourcing are required." Advertisement Susanne explained that high childcare costs present a "barrier to employment", particularly among young women with children. She said: "An increase in the cost of childcare led to a decrease in the number of paid working hours for mothers. "An increase in the cost of provision of just 10 per cent could lead to a 30 minute reduction in a mother's working hours." 1 There has been a shortfall of €22 Credit: Getty Images - Getty Advertisement
