Legislation to enact the social welfare changes contained in the Budget, including the controversial scrapping of the early childcare supplement, was published today by Minister for Social and Family Affairs Mary Hanafin.
The Social Welfare Bill 2009 will see the €1,000-a-year childcare supplement paid to families with children under 5½ years of age halved from next month and abolished by the end of the year. The supplement will be replaced by a year’s free preschool for all three- to four-year-old children.
Labour’s spokeswoman on social and family affairs Róisín Shortall said the changes “disproportionately attack young families”.
“The attention of the public has by and large been on the income levy, but the early childcare supplement changes will actually cost most workers and parents much more,” Ms Shortall said.
“It is difficult to see how family budgets can sustain this massive hit on household income and how this fits in to restoring consumer confidence and protecting jobs,” she said.
The Bill also includes measures to reduce the jobseeker’s allowance for under 20s from €204 a week to €100.
Ms Shortall said the changes for teenage jobseekers are being made without guarantees on training and education opportunities.
“The Labour Party absolutely accepts that the very worst outcome for a young person leaving education is to immediately sign on the dole.
“However, you cannot cut income support if first there are not real opportunities in place for young people to pursue,” she said.
The legislation also raises the PRSI ceiling so that workers will pay the charge on all income up to €75,036 compared to €52,000 at present.
The bill is due to be debated in the Dáil next week.
