Up to €2billion to be cut from Social Welfare: Times

gijoe

Well-known member
Joined
Jul 26, 2010
Messages
15,206
A spokesman for the Minister said last night there are no imminent plans for a voluntary redundancy programme. It has also been suggested that the social welfare budget – which accounts for one-third of overall current spending – could be cut by up to €2 billion in the budget.
Cabinet meets to decide range and extent of budget cuts - The Irish Times - Mon, Oct 25, 2010
That would be the equivalent of a 10% cut across all programmes and benefits and Social Welfare was singled out by Barry Andrews for severe cuts on The Week In Politics which lends credence to this story. But as it is unlilkely to be applied that way I assume some payments/benefits are for the chop, means testing brought in a number of the freebies like the TV licence, travel etc as well some across the board cuts of maybe 10% in Unemployment payments, circa €20/week, and 5% in pensions, circa €11/week. The one hit I can definitely see happening with a circa €2billion cut is the additional €37/month child benefit for the 3rd and subsequent child.
 


seanmacc

Well-known member
Joined
Jan 10, 2009
Messages
1,016
Taking 2billion out of the economy and in particular off the people that need it most will just lead to more unemployment. Its not as if there are any jobs out there.

Its not sustainable to keep deflating the economy like this or we will NEVER recover.
 

Cael

Well-known member
Joined
Jun 19, 2006
Messages
13,304
That would be the equivalent of a 10% cut across all programmes and benefits and Social Welfare was singled out by Barry Andrews for severe cuts on The Week In Politics which lends credence to this story. But as it is unlilkely to be applied that way I assume some payments/benefits are for the chop, means testing brought in a number of the freebies like the TV licence, travel etc as well some across the board cuts of maybe 10% in Unemployment payments, circa €20/week, and 5% in pensions, circa €11/week. The one hit I can definitely see happening with a circa €2billion cut is the additional €37/month child benefit for the 3rd and subsequent child.
It means people will have no choice but to turn to the black economy just to survive.
 

justme1

Well-known member
Joined
Oct 4, 2010
Messages
595
The budgets that have taken place recently have been cuts cuts and more cuts,and they have done wonder's for the ecomomy..
Thankfully they (Our Dear leaders) have learned from this and we are cutting more which will improve the economy even more..
There seems to be an Elephant in the room here folks,public sector pay and pensions,if these go untouched in the forthcoming budget by a party/ies (who should never be let near office again) and money is only taken from the poor and the middle class well then i reckon we should..................
 

FutureTaoiseach

Well-known member
Joined
Mar 20, 2005
Messages
7,980
Website
greatdearleader.blogspot.com
Taking 2billion out of the economy and in particular off the people that need it most will just lead to more unemployment. Its not as if there are any jobs out there.

Its not sustainable to keep deflating the economy like this or we will NEVER recover.
In the present circumstances, they are more likely to save than spend it so the effect may not be as you imply. Furthermore, more will be taken out of the economy if we don't convince the bond-markets that we are taking the deficit seriously. We are borrowing every penny of the €20 billion social-welfare budget. It's the bond-markets that are paying the social-welfare. To refuse to cut it is to fly in the face of this reality. We are borrowing 12% of the size of the entire economy, and 2/3rds of the govt's estimated tax-revenues of €31 billion for this year. It just isn't sustainable. Nor is is possible if the bond-markets refuse to buy our debts.

The cuts are coming one way or the other. Better to cut them gradually over a couple of years than find the bond-markets won't buy our debt in which case the social-welfare budget will have to be cancelled altogether....
 

turdsl

Well-known member
Joined
Mar 2, 2008
Messages
26,002
Who could believe that Fianna Fail could destroy and shame our people in such a short time. No party since we got our independence has left its people so broken.
 

flavirostris

Well-known member
Joined
Dec 21, 2007
Messages
24,570
Who could believe that Fianna Fail could destroy and shame our people in such a short time. No party since we got our independence has left its people so broken.
Anybody who has an idea of their track record..The problem is that the electorate forgot their previous bankrupting of the state (77 -81). They always have been and always will be a profligate, fiscally illiterate party, only concerned with attaining and holding on to power at any cost.
 

LongShanks

Well-known member
Joined
Feb 23, 2009
Messages
644
There seems to be an Elephant in the room here folks,public sector pay and pensions,if these go untouched in the forthcoming budget by a party/ies (who should never be let near office again) and money is only taken from the poor and the middle class well then i reckon we should..................
The elephant in the room seems to be untypical in that it has forgotten about two pay cuts already in the PS.
 

Blarneystone

Active member
Joined
Jun 26, 2008
Messages
146
working hours extended , overtime cut, 8 to 8 shifts no overtime, abolition of special pay allowances- all allowed for in croke park deal , I understand.

Govt have to tackle it- we are bust- no money- cant feckin pay

no choice

discussion irrelevant- the govt purse is empty
 

culmore

Well-known member
Joined
Jun 14, 2010
Messages
3,173
We may be borrowing the 20 billion to pay welfare but we are also borrowing to pay our Politicians their huge wages and expenses, salaries must be halfed and expenses cut out completely for them
 

seanmacc

Well-known member
Joined
Jan 10, 2009
Messages
1,016
In the present circumstances, they are more likely to save than spend it so the effect may not be as you imply. Furthermore, more will be taken out of the economy if we don't convince the bond-markets that we are taking the deficit seriously. We are borrowing every penny of the €20 billion social-welfare budget. It's the bond-markets that are paying the social-welfare. To refuse to cut it is to fly in the face of this reality. We are borrowing 12% of the size of the entire economy, and 2/3rds of the govt's estimated tax-revenues of €31 billion for this year. It just isn't sustainable. Nor is is possible if the bond-markets refuse to buy our debts.

The cuts are coming one way or the other. Better to cut them gradually over a couple of years than find the bond-markets won't buy our debt in which case the social-welfare budget will have to be cancelled altogether....
Most people couldn't possibly save, most of them are on the edge. You will find that many will end up having to go to loan sharks to make Christmas. Also many social welfare payments are going to pay mortgages and other loans, it is likely to put more pressure on the financial system.

There really has to be a better way
 

hammer

Well-known member
Joined
Jul 6, 2009
Messages
58,180
ok, let us get the calculators out.

2010 - Expenditure €50,000 million
+ for 2011 €3,000 million for bank bailout
Say €53 billion

2010 - Tax revenue between €30,000 million & €31,000 million

IF TAX REVENUE DOES NOT RISE WE NEED TO CUT OUR EXPENDITURE BY 22/53 TO BALANCE THE BOOKS - IE 40%

A 10% cut in social welfare is just the beginning.

PS pay needs to be cut by a further 40% etc........


THERE WILL BE NO RETURN TO 250,000 OR LESS ON THE LIVE REGISTER FOR AT LEAST 5/6 YEARS UNLESS ALL THOSE PEOPLE EMIGRATE.

Wake up and smell the coffee.
 

hammer

Well-known member
Joined
Jul 6, 2009
Messages
58,180
Most people couldn't possibly save, most of them are on the edge. You will find that many will end up having to go to loan sharks to make Christmas. Also many social welfare payments are going to pay mortgages and other loans, it is likely to put more pressure on the financial system.

There really has to be a better way
Spending was driven by credit cards, personal loans, car loans, equity release etc.

Irish people do not have the luxury of these anymore.

Bear in mind when you talk about saving & spending, ECB rates are at 1% currently.

What do you think will happen when they start to rise.

DEVASTATION to banks & borrowers.
 

gijoe

Well-known member
Joined
Jul 26, 2010
Messages
15,206
The Social Welfare budget has just exploded over the last 2 years. Of course this is a function of the massive increases in the live register. But even this year, when they should have a handle on the numbers, the Social Welfare budget appears to be heading for a €1billion overspend over that budgeted for in the 2010 budget. Hence the need for some major surgery.
 

hammer

Well-known member
Joined
Jul 6, 2009
Messages
58,180
The Fianna FAIL job creation plan is likely to kick into full swing in 2011 :)

PRSI exemption, €50 per week grant for every new employee who was unemployed for > 1 year, travel tax eliminated, entertainment an allowable business expense etc.......
 

timetochange

Active member
Joined
Jun 10, 2009
Messages
147
Website
www.facebook.com
we all agreed cuts need to be made,

but we can do them in a way that starts at the top instead of hitting middleclass down to SW

I agree our TD's are dishing out the pain yet are still sitting pretty on huge wages and expenses. they need to be cut by a large amount as well as the amount they can collect in a pension.

when people talk about cuts to the PS I always think of the highly paid who escaped the brunt of the cuts so if any one should be cut its them.

Mary Harney has said they will cut: ''Ms Harney has confirmed that cuts in the Health Service Executive could be between €600 million and €1 billion. The cuts will be implemented largely on the service delivery side.'' now Im sure if she wanted she could make cuts that wont cause people to live in pain or die! any one know has she taken a pay cut! that she would actually notice!

what about the tax breaks! 131 of them some could be gotten rid of or reduced saving huge amounts of money the pension tax relief who benefits from that people on huge amounts of money they get 41% tax relief were as lower paid get 20% but Truth be told most of cant afford to save money for our pensions!!!

the new social payment thing that's suggested to replace the PRSI,levies that was reported to actually cost more for middle income down workers but put more money in higher earners pockets.

what about a 3rd rate of tax for high earners, the government are considering about widening the tax band to bring in lower paid :confused:

there is a pattern here, the rich get richer and the rest of us can go to hell.

In stead of looking at better ways of making cuts they will cut SW and I heard Child benefit by 20% not take in the consequences of these actions, we have very little money but are trying to save as much as we can just in case. people on SW spend all their money on food, bills, loans, mortgage you cut it and what going to go first! I know what I would do! so as some one pointed out it might leave more loans unpaid and more houses left empty and families needing rehousing. more dept for the banks!

oh yea and the cuts have really worked so far hmmmmm

sorry rant over!
 

hammer

Well-known member
Joined
Jul 6, 2009
Messages
58,180
You got it :)


It doesn`t even matter whether Tds salaries are cut.

They pay over 50% in tax, prsi, levies, pension levies (?) etc......

They will make up the shortfall in expenses & junkets.

BTW Fianna FAIL do not give a toss who pays as long as someone pays for their incompetence.
 

timetochange

Active member
Joined
Jun 10, 2009
Messages
147
Website
www.facebook.com
You got it :)


It doesn`t even matter whether Tds salaries are cut.

They pay over 50% in tax, prsi, levies, pension levies (?) etc......

They will make up the shortfall in expenses & junkets.

BTW Fianna FAIL do not give a toss who pays as long as someone pays for their incompetence.
fools are we to sit and take it! :mad:
 


New Threads

Popular Threads

Most Replies

Top