Scrapping of Cost-of-Living Payments Will Push Many into Poverty, The Wheel Warns at Pre-Budget Forum
The Wheel issued a stark warning at a pre-Budget forum hosted by the Department of Social Protection on Thursday17 July, cautioning that any return to austerity would have a devastating impact on vital community and voluntary services and the vulnerable people who rely on them.
"The idea that charities can indefinitely 'do more with less' is simply unsustainable and dangerous." Guillaume Jacquinot, Advocacy and Campaigns Manager at The Wheel. "With one in twelve charities specifically dedicated to the relief of poverty or economic hardship, and countless others in health, housing and homelessness, child and family services, and community development under immense pressure, any cut to vital social infrastructure will have severe repercussions, at a time when an increasing number of families are likely to fall into poverty.”
Recent speculation suggests the upcoming Budget may prioritise fiscal restraint, focusing on competitiveness and defense over crucial social investment, partly due to international uncertainties and geopolitical events. The Wheel opposes such a direction, particularly given alarming poverty statistics.
“While the Government’s cost-of-living measures provided short-term relief for many families, they were never a substitute for sustained investment in social services and targeted supports,” said Guillaume Jacquinot. “Poverty is a deeply complex issue that cannot be addressed with temporary fixes. Phasing out these measures now risks pulling the rug from under already struggling households, when the priority should be building a durable and equitable safety net.”
The latest Survey on Income and Living Conditions reveals a worrying increase in consistent poverty rates, rising to 5% this year from 3.6% in 2023. This figure falls significantly short of the 2% target set by the Roadmap for Social Inclusion 2020-2025.
"At a time when Ireland is experiencing unprecedented wealth, it is unconscionable to cut vital social investment, both for individuals and the organisations that support them," Jacquinot said. "This would be an unacceptable approach for the first Budget of this new government."
Comprising over 35,000 organisations, the community and voluntary sector is a cornerstone of Irish society. It employs one in every eight workers in Ireland and is bolstered by more than 76,000 volunteer trustees. In 2022 alone, the sector's total economic impact reached an impressive €32.1 billion, with nearly half of its income self-generated through fundraising. This significant self-funding clearly demonstrates how the sector consistently subsidises public service delivery, alleviating pressure on state resources.