The Society of St Vincent de Paul gave a qualified welcome to parts of the Budget, but said Mr McCreevy had failed to close the gap between the haves and have-nots. The Budget had also failed to increase the real incentive to work. "The tax changes announced have yet again widened the gap between those on unemployment assistance and those on low pay compared with those on higher salary levels," it said in a statement. The Minister had ignored its advice to widen the tax bands and increase personal allowances and in not doing so had reduced the incentive for the long-term unemployed to take up work.
The society welcomed the new personal allowances for the long-term unemployed who find work, but said the Minister had not dealt with the problem in an integrated way. The increase in Family Income Supplement was also welcomed. The increase in the Part-time Jobs Scheme and the Jobs Initiative to 2,000, while a positive step, fell short of the 5,000 extra places targeted in Partnership 2000.
The society welcomed the £5 a week increase in the old-age pension but noted "with regret that poverty has not in any way been dealt with - with an increase of only £1.50 per month in child benefit and no increase in child dependant allowance".
It pointed out that unemployment assistance for the short-term unemployed and the supplementary welfare allowance were still below the minimum levels recommended by the 1987 Commission on Social Welfare.
The society also welcomed the tax relief for corporate donations to charities and for personal and company donations to disadvantaged schools, but said there should be a book rental scheme fully backed by State funds.