Growing indebtedness a concern

THE effect of budget cutbacks in recent years is emerging as a “significant issue” for many households, according to the Citizens’ Information Service in Clare.

 

In its pre-Budget 2013 submission, the organisation outlines, “The cumulative impact on low-income households of cutbacks in services and benefits in recent years is a matter of concern and should be carefully considered in the deliberations around Budget 2013. In particular, the impacts of growing indebtedness should be key considerations.”

The submission is based on feedback from the Citizens’ Information Service in Clare, reflecting the challenges facing low-income households and the position of those who require additional support from the State.

Last year, the service highlighted a number of issues, with this year’s submission stating many of these still remain.

“Growing indebtedness and an inability to meet the costs of daily living are concerns that are being increasingly reflected in queries from the public to centres throughout the county. Welfare to work benefit traps are a recurrent theme in queries.”

According to the Citizens’ Information Service, issues arising from the experiences of users of the service include the cumulative impact on households of cutbacks in recent budgets; the significant difficulties experienced by low income and reduced-income households with children; how to move from welfare to work without loss of income; difficulties with rent supplement; the impact of administrative delays in processing benefit applications on people’s lives and difficulties accessing long-term care supports.

According to the service in Clare, priorities for Budget 2013 should include a reduction in delays in the processing of claims and appeals for social welfare payments.

“Low and reduced-income families frequently experience multi-faceted challenges relating not only to income but also to quality of health, housing and adequate nutrition. All of these factors contribute to the personal and psychological well-being of individuals and families…Difficulties in accessing benefits and services to which people have an entitlement inevitably exacerbate the difficulties experienced by low-income families.

“Delays in the processing of claims for services and income supports are thus likely to put additional pressure on families, some of who will undoubtedly already be experiencing some form of indebtedness,” the submission outlines.

There are also calls for the maintenance of current levels of income support for children in low-income households. The provision of further supports to meet the education costs for low-income families and reduce costs, where possible, has also been urged.

According to the submission, in 2010 almost one-fifth of households with children were at risk of poverty, with the cost of education a concern for a growing number of families.

The service states that Budget 2013 must be used to develop a stronger focus on localised responses to social housing need through better maximising existing local housing stock and more interaction between local authorities and private landlords.

It is also calling for fuel poverty in low-income houses to be addressed and enhanced employment initiatives and skills acquisition programmes. Among the other priorities called for by the service are an exploration of additional ways of eliminating ongoing welfare to work traps, stimulation of entrepreneurship and a consolidation of current levels of funding for core community care services.

The service is urging that the concept and principals of the Fair Deal be applied to community care services. They are also calling for the provision of sustainable solutions to the mortgage debt crisis, with medium and long-term supports for those experiencing difficulty maintaining payments on their family home.

The submission outlines, “The need to keep all children out of poverty must continue to be a budget priority in the short and medium term, as well as in the longer term. Identifying mechanisms for targeted child-income supports for low-income families, whether on social welfare or in low-income work, should thus be a central concern for Government in social welfare considerations in respect of Budget 2013.

“The Citizens’ Information Service takes the view that targeted child-income supports and services are required on an ongoing basis to supplement the universal child benefit provisions.”

It goes on to state the need to ensure all people have access to quality housing must be reflected in the way housing supports are provided.

“The current difficulties being experienced by some Rent Supplement private sector tenants must be kept under careful review,” the submission adds.