Cabinet agree to €4billion in cuts including 10% in Social Welfare: MoS

[kerrynorth]

According to the Mail on Sunday, and I understand that other papers have similar stories, the Cabinet has agreed to €4billion in spending cuts for 2010 including a 10% cut in the €21.5billion Social Welfare budget. The other big cut is €1.5billion in capital expenditure.

The 10% cut in Social Welfare will not include pensions and the Christmas bonus may be restored to sweeten the bitter pill. However, the cuts will involve the ending of universal children's allowance and in order to achieve an overall 10% cut without hitting pensions the government will have to hit unemployment benefit/allowance by somewhere between 15-20%. That will entail a €30-40 cut in the weekly single rate of €204.30. Meaning the basic weekly rate will be cut to somewhere between €165-175, with pro-rata cuts for couples etc.

[corelli]

According to the Mail on Sunday, and I understand that other papers have similar stories, the Cabinet has agreed to €4billion in spending cuts for 2010 including a 10% cut in the €21.5billion Social Welfare budget. The other big cut is €1.5billion in capital expenditure.

The 10% cut in Social Welfare will not include pensions and the Christmas bonus may be restored to sweeten the bitter pill. However, the cuts will involve the ending of universal children's allowance and in order to achieve an overall 10% cut without hitting pensions the government will have to hit unemployment benefit/allowance buy somewhere between 15-20%. That will entail a €30-40 cut in the weekly single rate of €204.30. Meaning the basic weekly rate will be cut to somewhere between €165-175, with pro-rata cuts for couples etc.

Thanks Kerry. Was this not on recommendation of An Bord Snip?

In any event, I see this as the end of the Government, if true. The Greens will be pilloried for hitting the weakest in society and walk, IMO.

[Sean-Bhean bhoct]

According to the Mail on Sunday, and I understand that other papers have similar stories, the Cabinet has agreed to €4billion in spending cuts for 2010 including a 10% cut in the €21.5billion Social Welfare budget. The other big cut is €1.5billion in capital expenditure.

The 10% cut in Social Welfare will not include pensions and the Christmas bonus may be restored to sweeten the bitter pill. However, the cuts will involve the ending of universal children's allowance and in order to achieve an overall 10% cut without hitting pensions the government will have to hit unemployment benefit/allowance buy somewhere between 15-20%. That will entail a €30-40 cut in the weekly single rate of €204.30. Meaning the basic weekly rate will be cut to somewhere between €165-175, with pro-rata cuts for couples etc.

If this is true I look forward to it and I will support the government, or any other party, if they propose a cut in social welfare. Social Welfare should never be seen as an alternative to work, which it has become.

[Wendy]

When is this due to take effect? I suppose the idea is to concentrate our minds on the option of emigrating.

[asset test]

If true, and I believe cuts like this have to happen, it is self inflicted by a profligate Government.

So the Coalition might fall, and a GE happens in Autumn, then FG or whoever will have to clean up the mess created by them. Shameful.

Then FF will return in a few years re energised and full of promise to reverse all the pain being inflicted by the new Government (albeit because the present incumbents caused it). The economy and the recession will be easing a good deal by then, people's memories are short, they will want to hear good news, so round and round we go again. It is this aspect of FF cuteness that irritates me no end.

[mr_anderson]

Only 10% ?
FFS we need to chop spending by 30%.
Painful as it may be, theres no other option.

Our tax revenue has fallen back to 2003/4 levels, hence our spending must do the same.

Better to do it now while our national debt is manageable than wait till it spirals out of control thus limiting our options even further.

[kerrynorth]

When is this due to take effect? I suppose the idea is to concentrate our minds on the option of emigrating.

On one of the radio programmes this morning it referred to Brian Lenihan in one of the papers being quoted as saying, or infering, that Ireland needs 150,000 to emigrate pretty soon or the country goes under. Do not ask me what paper they were referring to.

[LDF]

Stories like these are prominent across all papers today. It sounds like the spin machine has been turned on ahead of the review of the Govt Programme.

I would like to hear from Danny Bolye on the welfare cuts as I believed this was one of his red lines. I specifically remember him on PrimeTime after the last budget, defending it by saying the Greens had protected social welfare.

Personally, I don't think we could get the deficit under control without cutting welfare. However, from a political perspective, it would be interesting to hear from the Greens.

[Wendy]

If this is true I look forward to it and I will support the government, or any other party, if they propose a cut in social welfare. Social Welfare should never be seen as an alternative to work, which it has become.

I'm in sympathy with your view in principle but there really are very few jobs out there. Employers are making fairly ludicrous demands on candidates and some jobs have vanished before the ink is dry on the contract of acceptance.

[Wendy]

On one of the radio programmes this morning it referred to Brian Lenihan in one of the papers being quoted as saying, or infering, that Ireland needs 150,000 to emigrate pretty soon or the country goes under. Do not ask me what paper they were referring to.

That's in the Sindo. I've linked to the quote on another thread.