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2005

Mixed response to Budget Childcare and Pension Provisions

Date Released: 08 Dec 2005

The Union's National Equality Secretary, Rosheen Callender, said that while the government's commitment to increasing the supply of childcare places was very welcome, the amount promised to parents to help with them with the costs of childcare, at less than €20 per week, was far from adequate.

"Given the resources available this year, and the extent to which working parents' expectations had been raised prior to the Budget, a payment of less than €20 per week, which is only about 10% of the actual cost of childcare nowadays, is extremely disappointing. Hopefully, it will be increased substantially in the future.

"SIPTU welcomes the commitment, however belated, to increase the duration of Maternity Leave to 26 weeks over the next two years. This is something trade unions have been seeking for over 30 years, but better late than never! However, although the amount of Maternity Benefit is to be increased to 80% of a woman's 'reckonable earnings' (as promised last year under Sustaining Progress), the ceiling on 'reckonable earnings' has been left at €382 which is only about 60% of Average Industrial Earnings. This means that the majority of women will not receive anywhere near 80% of their actual earnings while on Maternity Leave, which detracts enormously from the apparent increase granted.

"On pensions, we welcome the government's stated intention to 'do something' to help lower-paid workers to contribute to pension schemes; and we urge them to implement the recommendations of SIPTU and The Pensions Board in this regard. This is particularly important for the thousands of low-paid women workers who will otherwise be at high risk of poverty in their retirement and old age.

"However, for the current generation of pensioners, particularly women, today's Budget is a huge disappointment. Contributory pensioners received the lowest increase of all social welfare recipients - only €14 per week. This is a very poor reward for having paid the requisite PRSI, for those workers least likely to have any supplementary pension to add to their social insurance pension." Ms. Callender said.





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