The Combat Poverty Agency proposes a tax and welfare package of €1,200 million for next year, €280 million more than 2004, in its pre-budget submission to the Government.
Launching its proposals today, the agency said "welfare improvements, rather than tax deductions, have a stronger impact on reducing income poverty and these should be the policy priority for Budget 2005."
Of the €1,200 million package, Combat Poverty proposes €665 million (54 per cent) go on welfare improvements, €239 million (20 per cent ) on universal child benefit and €305 million (26 per cent) on tax reductions.
In welfare payments, this translates into an increase of €12 per week and €9 per week increase in the qualified adult welfare payment. The agency proposes that a pilot savings scheme be encouraged among welfare recipients, as well as reform means-tests and income disregards for welfare recipients.
In child benefit, the agency proposes an increase of €17.60 per month, with a €20.10 increase in the higher rate. This figure takes into account the government's as yet unachieved set target (by 2005) of €149 per month, it said. It also proposes the Government pay the clothing/footwear allowance to all means-tested child dependent allowance recipients; and further expand the provision of school breakfasts and hot lunches.
It proposes an increase threshold for family income supplements by €35 per week (9 per cent), increase PAYE tax credits by €240 per annum (23 per cent); and increase medical card threshold for children by €14 per week (€22 for larger families).
The agency say the measures will address the growing number of low-income households in Irish society. "Rising average incomes have not benefited everyone to the same extent, with a growing proportion of the population (22 per cent) below 60 per cent of median income, the EU measure of relative income povverty," said Combat Poverty Director Ms Helen Johnston.