IRELAND: Children’s Rights Alliance Budget Statement - 'No hiding place from 1% levy'

“The Children’s Rights Alliance is disappointed with the Minister for Finance Brian Lenihan TD’s first budget, as the small print relating to its claims of targeted spending in education, health and social welfare becomes clearer. Amidst the international banking crisis, we acknowledge cuts would have to be made, but Budget 2009, despite the intentions of the former Minister for Children, will do little to ‘protect the most vulnerable in society’. The call for ‘solidarity’ and for the nation to ‘all pull together’ is misplaced, when careless cuts, including a 1 per cent levy, will drive more children into poverty, rather than lift them out of it.

That said, there have been some saving graces. The €2 increase in the Qualified Child Increase (QCI), although modest, is to be welcomed. The QCI is one of the few existing measures to target income support towards the poorest families – those that are completely dependent on social welfare. The desperate state of our school buildings has not been ignored in this budget. The €581 million dedicated to primary and secondary school infrastructure is an important investment in the longer-term standard of Irish schools, and is welcomed by the Alliance.

However, for families on low incomes, the 1 per cent levy will be a hit significant enough to topple some families below the poverty line. Over 230,000 children are at risk of poverty in Ireland, almost 1 in 4 – today’s Budget is set to increase this figure.

We reject Minister’s Lenihan’s suggestion that universal entitlements fail to target those in greatest need. Universal Child Benefit is about equity and how society values children. Its taxation will not save money for Minister Lenihan. The Commission for Taxation will find that the administrative costs of making complementary changes will outweigh any saving.

Cuts to the Child Benefit payment to young people, who have passed the cut off age of 18 years, but are in full time education and remain dependent on their families, is a significant step backwards. It shows a lack of appreciation for the vulnerability of young people at this stage in their life – it is in all our future interests that young people are encouraged to continue in further education. The withdrawal of this payment will disproportionately impact on children in poorer households where the incentive will be to find a job rather than remain in education.

In addition, as a member of the Equality Rights Alliance, we are deeply concerned about the merger of the Equality Authority and the Irish Human Rights Commission. These bodies are central to the framework we have established to protect and promote human rights, including the human rights of children. While we acknowledge the legitimate objective of cost savings in this current and ever changing, financial climate, we are gravely concerned that the merger will dilute work programmes and compromise the scrutiny and promotion functions of these respective bodies. This decision is flawed and we strongly urge that it be re-examined.

Read the small print: is this Budget about cutting children out of a future?”

Jillian van Turnhout
Chief Executive

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