Howlin cuts will add €1,000 to family outgoings

Wednesday 05 December 2012 12.27
Howlin cuts will add €1,000 to family outgoings

Larger families will be between €800 and €1,000 worse off a year under austerity measures revealed in the first part of the Budget 2012.

But lower paid workers got a boost in an increase in the Universal Social Charge threshold.

At the moment the charge applies to workers earning over €4,000 a year but in future it won't apply to anyone earning less than €10,000.

Families and some pensioners however will be hit hard by slashed child benefit, winter fuel lallowances and back-to-school allowances.

Children's allowance for first and second child remains the same at €140 each but the allowance for the third and fourth children is being cut back to €140 from €167 and €177.

This means a family of six would see their monthly children's allowance reduce from €624 to €560.

Fuel allowances are also being cut back as are disability allowances

Social

Weekly social-welfare payments unchanged

Changes to the one-parent family payment will save €20.7m

Child benefit for first and second child unchanged

Cut of six weeks in the cold-weather allowance

Jobseekers' benefit to be based on five-day week

Redundancy and insolvency changes will reduce employer rebate from 60% to 15%

Back-to-School Clothing Allowance abolished for two/three-year-olds

Payments for new claimants of Disability Allowance cut to €100 a week for people aged 18-21, and to €144 for people aged 22-24.

Health

€543m in net savings in the health area

Extra charges on private treatment in public hospitals

Drug Payment Scheme monthly threshold up from €120 to €132

New measures will reduce the price of drugs

2% cut in disability, mental health and children's services, saving €50m

Staff ceiling of 103,800 employees to apply to HSE in 2012

Education

€132.3m savings in education

2% cut in Higher Education funding - €7m saving

Increase of €250 in third-level student contribution

Changes to fee and maintenance supports for new post-graduate students

Education expenditure will comprise 17% of all current expenditure next year

€19.2m in cuts to trainee and apprenticeship schemes

Primary-school transport charge to be doubled to €100

Reform

Savings of €105m in Dept of Agriculture, Marine, Food

Savings of €45m in Dept of Transport, Tourism, Sport

Savings of €34m in Environment, Community, Local Govt

€52.9m cut in Overseas Development Aid

€79m cut in spending for An Garda Síochána

€3.8bn fiscal adjustment needed in 2012

€2.2bn of adjustment from spending

€1.4bn in day-to-day spending cuts

€20m earmarked for new Labour Market Activation Fund

Public service staff down by 6,000

Public service pay bill to fall by €400m in 2012