For a Government that delivered a succession of real increases in the value of old age pensions, this Coalition has been harsh and uncaring in responding to the needs of other social welfare recipients.
A plea for compassion and a reversal of policy was made to the Minister for Social and Family Affairs, Ms Coughlan, yesterday by a group representing widows, widowers and lone parents who have had their special entitlements revoked. Their case was subsequently supported in a Dáil debate, but without apparent effect, when the Labour Party, Fine Gael and the Green Party joined in criticising the Government's parsimonious action.
The removal of this group's special entitlements in last November's spending estimates was just one of 16 welfare cuts introduced as a response to perceived difficulties affecting the Government's finances. The action by Ms Coughlan was designed to save €6 million a year by removing a long-standing entitlement of widows, widowers and lone parents to an additional half-rate payment of various social benefits, based on their social insurance contributions. The additional half-rate payment was removed.
This is a particularly vulnerable group of people that is badly organised and has little or no political influence. People who suddenly lose a spouse can face enormous financial and social difficulties in bringing up their children and in maintaining a home. The situation is no different for single parents. The special allowance was introduced some years ago in a generous and caring response to that situation. It should not be abolished in a rushed, penny-pinching exercise.
Ms Coughlan has admitted that social welfare savings amounting to € 56 million were demanded by the Minister for Finance, Mr McCreevy, towards the end of last year and that hard decisions were taken within her Department. This financial pressure resulted in cuts and changes in welfare schemes that affected some of the poorest and most defenceless people in our society. Anti-poverty groups were annoyed by the blunt nature of the cut-backs, particularly in relation to rent allowances, emergency crèche payments and family income supplements. Following their campaign of opposition, some of the harsher elements of the new regulations were modified.
The Government's financial position has changed significantly for the better since these social welfare cuts were introduced last November. In the first three months of this year, normal income from taxation exceeded Department of Finance estimates by € 350 million. In the last three months of 2003, the Revenue Commissioners raised € 79 million from non-compliant taxpayers in fines and back-taxes and that figure is still rising rapidly.
The Coalition Government should review its commitment to social justice and reinstate the traditional social welfare entitlements of widows, widowers and lone parents.