MANDATE accuses Government of targeting low income workers and their families in Budget 2012

Tuesday 6 December 2011

Douglas says stealth tax rises and welfare cuts represent a ‘double whammy’ for lower income workers

Union acknowledges increases in Universal Social Charge threshold but says Government should have gone further

The Mandate trade union has accused the Government of targeting workers on lower and middle incomes in the 2012 Budget. The union’s General Secretary, John Douglas, says that the increases in VAT, carbon tax and other stealth taxes combined with cuts made to welfare payments, such as Child Benefit, represent a ‘double whammy’ for lower income workers. Mandate Trade Union represents over 45,000 workers in the bar and retail trades.

“This afternoon the Government confirmed a number of stealth tax increases that will disproportionately affect those on lower incomes. VAT is going up by 2% – which will adversely affect business in the retail trade where our members work – and the price increases brought about by this change will hit those on lowest incomes the hardest as they spend nearly all of their incomes. In addition, the introduction of the annual household charge, the increases in carbon tax and fares for public transport will hit many people who are already struggling to heat their homes and travel to and from work.”

Mr Douglas said that in addition to disproportionately increasing its tax take from lower paid workers, the Government has failed to sufficiently tackle the unfair nature of the Universal Social Charge (USC).

“Mandate acknowledges the fact that the Government has removed workers earning up to €10,036 per annum from the USC net – an increase from the previous €4,004 threshold. However, we believe they should have gone much further and set the threshold at €16,016 per year or €308 per week. Unfortunately, the current Government has missed the opportunity to right the wrong done by the last Government and give lower paid workers a significant break at this difficult time.”

Mandate General Secretary, John Douglas, said yesterday’s cuts in welfare benefits, such as Child Benefit and Back to School Allowance, would make the situation much worse for families on lower incomes who are barely keeping their heads above water.

“When the welfare cuts and stealth tax increases are combined with abolition of the Joint Labour Committees, it’s clear that the Government has not done enough to protect the lowest paid workers in our society,” John Douglas concluded.