Yesterday we learnt of our financial fate for the coming 12 months. The majority of cutbacks were reported in advance so there was surprisingly little gnashing of teeth. However, for public sector workers (a fifth of the country’s workforce) and welfare recipients, the Budget confirmed their worst financial fears. Notable reductions in pay checks and pay outs mean an unfortunate few will bear the brunt of this year’s clawback on spending.
Rather than debating the strategic decisions behind the measures taken, we have decided to outline the cutbacks which may directly affect you:
Income
- Public service workers will take a further pay cut. Salaries up to €30,000 will be cut by 5%; salaries up to €40,000 will be cut by 7.5%; salaries up to €55,000 will be cut by 10% Salaries above €55,000 will be cut by up to 15%
- Taoiseach Brian Cowen will take a 20% pay cut, Ministers will receive a 15% pay cut
- Minimum wage will remain at €8.65
Social welfare
- Social welfare payments have been cut by €8 to €196 p/w
- For those aged 20-21, the rate for Job seekers and Supplementary Welfare Allowance has been dropped to €100 p/w
- For those aged 22-24, the rate for Job seekers and Supplementary Welfare Allowance has been dropped to €150 p/w
- Child benefit has been cut by 10%, reducing monthly payments by €16. Welfare dependent families and low income families will be fully compensated
- The old age pension remains untouched
Tax
- Excise duty on beer is down by 12c, spirits 14c and wine 60c. It is up to the vintner to pass savings on to the customer
- A reversal of vat increase from 21.5% to 21%
- Ireland’s Corporation Tax remains at 12.5%
Transport
- A €1,500 car scrappage scheme will be introduced from 1st January-31st December 2010. Applies to cars over 10 years old only
- From midnight last night, petrol went up by 4c and diesel went up by 5c
Household expenses
- Homeowners who bought during the boom and are now in negative equity will be entitled to mortgage interest relief support until 2017
- The price of home heating oil, coal and briquettes will rise in May
- Water charges will be introduced in the future, based on consumption above a free allocation
Budget 2010’s greatest flaw appears to be it’s lack of foresight. It seems to be a case of rescuing the ship with no ideas as to when we might get moving again or what direction we should take. There is nothing to encourage job creation or to stimulate our shrinking economy.
The aftermath of the €4billion cost-cutting package will ultimately determine it’s success. Minister for Finance Brian Lenihan has told us that the worst is over; we’ll just have to wait and see…
The full report is availble here.
Tags: family, government, Savings
(1 votes, average: 5.00 out of 5)
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I actually thought it was going to be worse! Just goes to show that their leaks did the job - there would have been much more outrage if we hadn’t been so prepared for the slashing!!
For once I think their PR people did a good job - for the government that is - not for Joe Public of course!!