Cork TD warns against two-tier social welfare system but SVP welcome plans to stop 'middle-income' poverty

A CO-ORDINATOR for St Vincent De Paul (SVP) in Cork has welcomed plans from Social Protection Minister Heather Humphreys to overhaul the current Jobseeker’s payment — but a local TD has warned it will create a ‘two-tier’ system.

The Minister for Social Protection Heather Humphreys is due to bring proposals before the Cabinet this week which would see social welfare linked to people’s past earnings.

This means a worker with five years of PRSI contributions would be entitled to 60% of their gross salary capped at €450 per week under the plans.

Gerry Garvey of SVP told The Echo that the proposals could stop people from falling into poverty.

“If middle-income people lose their jobs — and a number of them are going to over the next few months in the fallout — then it makes an awful lot of sense to make use of the revenue they have paid in to stop them falling into poverty,” he said. 

“In principle it is a good idea.”

However, Solidarity TD for Cork North-Central Mick Barry said social welfare rates need to be increased for everyone.

'€350 MINIMUM NECESSARY'

"The very fact that €350 was judged to be the minimum necessary to live on during the pandemic is a sure sign that social welfare rates are just too low."

“Social welfare rates need to be increased across the board. 

“However, I would warn against any attempt to create a two-tier system or to stop payments after a limited period of time,” he added.

Mr Garvey, the SVP south-west regional co-ordinator, said Ireland is dealing with a new cohort of poor that fall between the cracks due to their income levels being slightly above social welfare rates and who face immediate hardship when falling into unemployment.

“One of the things we have noticed is the number of the new poor."

“These people are on maybe a low income, but slightly above the social welfare rates and they are the people who are under a lot of pressure. It is a good proactive approach, and it could be a safety net.

“I presume it would be a short-term measure and wouldn’t be permanent. There will have to be some sort of tiering. They will have to work out the details. I wouldn’t like to see it being used by the super-rich, but I don’t see them being in that category,” he added.

The Minister for Social Protection Heather Humphreys is due to bring proposals before the Cabinet which would see social welfare linked to people’s past earnings.

The proposals from the Fine Gael TD seek to radically overhaul the current jobseeker payment and would enable high earners who lose their jobs to be entitled to more than twice the normal social welfare rates if their previous earnings or PRSI contributions reached a certain level.

This means a worker with five years of PRSI contributions would be entitled to 60% of their gross salary capped at €450 per week under the plans.