Republican News · Thursday 7 March 2002

Euro cost of living increase

The changeover to the Euro has led to a rounding up of prices and has led to an increase in the cost of living, especially for those on low incomes. So said Caoimhghín Ó Caoláin when he spoke in the Dáil last week on the Social Welfare Bill. The Sinn Féin TD also raised what he termed inequalities with regard to the treatment of lone parents.

The Cavan/Monaghan TD welcomed the increase in Child Benefit but pointed out that, unlike some payments that were brought forward to the start of the new social welfare and tax year, Child Benefit increases only come into effect as of April of this year and recipients have to wait until May to receive payment.

"Mothers and children are equally deserving of having their allowances brought forward to the start of the year," he said. "The early months of the year, particularly the January to March period, is the time of greatest financial hardship for many families as the outlay of the Christmas period leaves them struggling. A January increase this year, rather than an April one paid in May, would have made a significant difference at a time of great financial distress. It was a missed opportunity and one I note with regret."

Ó Caoláin said the changeover had undoubtedly brought about an increase in the real cost of living. "This is instanced in many ways, including in terms of fees paid for services to a multiplicity of agencies. Five pounds is often regarded as €10 and the small coinage is viewed as more of nuisance value than of real value."

Ó Caoláin then raised anomalies in the social welfare system which he urged the Minister for Social Welfare Dermot Ahern to address: "Widows and widowers are entitled to additional benefits with their payments, such as free telephone rental, free television licence, free ESB units etc," he said. "I agree that these payments should be made, irrespective of age, but the case of widowed people is in stark contrast to that of lone parents. In many parts of the country a single-parent family can live beside the family of a widowed spouse with the same difficulties that life presents, but because one has lost a partner due to accident or ill-health and the other does not have a partner they are treated differently. This merits re-examination in regard to the basic similarity of being the sole parent struggling to meet the needs of children.

"Why is there not parity between the status of widow and lone parent and why do we draw a distinction? Are they not both dealing with the same set of problems presented by life?

"Another anomalous situation is that of those who would otherwise qualify for additional supports but who are denied because of the permanent or occasional presence of a family member in the home. If it is not the intention of the government to address this on a 100% basis, then it may be within the gift of the minister to explore a percentage approach of the cost in regard to these entitlements being allocated to the otherwise qualifying recipient. I urge the minister to explore this area."