Michelle Murphy SJI post budget analysis 16 oct 19
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Michelle Murphy, Social Justice Ireland responds to aspects of Budget 2020
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Michelle Murphy SJI post budget analysis 16 oct 19
- 1. Budget 2020 Reflections and Analysis NERI Seminar 16th October 2019 Michelle Murphy Research and Policy Analyst Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 2. Budget 2020 – overall assessment • Overall people on lowest incomes left behind Social Welfare Minimum Wage • No real progress in major areas: Housing Environment Education – future funding Taxation • Contained some welcome developments © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 3. Budget 2020: some progress • Increase in stamp duty on non-residential property • Carbon tax increase • Ringfencing of increased carbon tax revenue • Brexit fund • Hot School Meals, Living Alone Allowance, JSA U26 and other small welfare changes • National Childcare Scheme • Special Needs Education © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 4. Budget 2020 and low income households © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 5. Brexit and low income households © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI Percentage of Total Expenditure spent on Food, by income decile
- 6. Brexit and low income households • €892 - €1360 cost of living increase – No Deal. • Will be unevenly distributed low income households most exposed. • Food represents a large proportion of spending for bottom 40% Between 17% and 19% total expenditure • These households have the least capacity to absorb a large impact on their living costs. © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 7. Budget 2020: Social Welfare Rates © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI Jobseekers Benefit (% of Avg Weekly Earnings) • €9 increase in B2020 was required to meet the benchmark of 27.5% average earnings • Welfare recipients will be left behind if rates don’t keep track with increases elsewhere in the economy • Budget largely ignored the social welfare system – largely ignores the living standards and needs of weakest in society
- 8. Minimum Wage and Low Pay © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI • Low pay – 1 in 5 workers • Minimum Wage will be €2.50 below the Living Wage in 2020 • Living Wage = benchmark for minimum living standards for workers • In contrast with the ongoing increases in pay across the rest of society. • People on low pay left behind Low Pay Gap
- 9. Disability: no progress • More than one in three (35.4%) people with a disability live on an income below the poverty line and 26% live in consistent poverty. • Budget 2020 did not take the necessary steps to improve services and funding for this area e.g. home supports, respite care, investment in community care. • No move to introduce a cost of disability payment despite Government commissioning work on this issue in Budget 2019. • UNCRPD – no additional funding for implementation © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 10. Budget 2020 – housing and environment © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 11. Budget 2020: Housing • Expenditure on emergency accommodation has increased by 311% since 2014. • €440m in 31 local authority areas. • Focus is on HAP and private market reliance • Must move to prevention – and State construction of social and affordable homes. • Help to Buy subsidising inflation? © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 12. Budget 2020: Housing © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI • 71,858 households on social housing waiting list • 77.5% are Single Adult Households (including 22,195 single parent households) • Most impacted by lack of social and affordable homes • “Affordable home” = 300k - €320k • Home ownership simply out of reach of most single adult households.
- 13. Budget 2020: Environment “Climate change is without doubt the defining challenge of our generation” – Minister Donohoe • Retrofitting? • Public Transport? • Environmental Subsidies? • Circular economy? • Just Transition? © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI
- 14. Thank you © Social Justice Ireland W: www.socialjustice.ie T: @SocialJusticeI F: fb.me/SocialJusticeI