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Leah Farrell/RollingNews.ie

New analysis shows gap between rich and poor in Ireland is widening

Social Justice Ireland said the rich-poor gap increased by €2.96 per week, or €154 per year, as a result of tax and welfare measures in the 2022 Budget.

THERE HAS BEEN an increase in the rich-poor gap in Ireland as a result of taxation and welfare measures adopted in Budget 2022, according to a new analysis from the think tank Social Justice Ireland.

Social Justice Ireland said its latest briefing paper shows that government policy is “not yet focused on achieving the objectives of reducing poverty and promoting social inclusion”.

Economic and social analyst Colette Bennett said the rich-poor gap increased by €2.96 per week, or €154 per year, as a result of tax and welfare measures in the 2022 Budget.

“The overall rich-poor gap stood at €975 per week (€50,800 per annum) in 2022 and it has grown by a total of €30 per week (€1,550 per annum) over the period 2014-2022,” Bennett said.

“Our analysis also monitored what we call the “middle-poor gap”, that is the difference in the distributional impact of recent Budgets on households dependent on jobseekers payments (poor) and PAYE workers on €40,000 per year (middle). Overall, the middle-poor gap has grown by a total of €21 per week (€1,070 per annum) over the period 2014-2022.”

She said the cumulative middle-poor gap stood at €572 per week (€29,800 per annum) in 2022.

This gap has decreased by 16% following the budgetary policies of the current government, which Bennett said can be explained by the full payment of the Christmas Bonus to jobseekers in 2020/21 and no other changes to income taxation or welfare payments for these individuals.

Among households with jobs, the gains from the Budget range from 39 cent per week (for low income couples on €30,000) to €16.11 per week for couples with incomes over €80,000. Earners on the living wage gain more due to the increase in the level of that payment.

Among households dependent on welfare, the gains have ranged from €5 per week for single unemployed individuals to €24.65 per week for unemployed couples with two children over 12 years of age.

Suzanna Rogers, research and policy analyst, said the analysis highlights how low income families, those with incomes below the standard rate income tax threshold “gain least from the budget measures over the past two years”.

The households analysed are spread across all areas of society and include those with a job, families with children, those unemployed and pensioner households. This is a snapshot of Irish society. Within those households that have income from a job, we include workers on the minimum wage, on the living wage, workers on average earnings and earners with incomes ranging from €30,000 to €200,000.

CEO of Social Justice Ireland Dr Seán Healy said they are concerned that recent budgets have shifted away from a prioritisation of low income welfare dependent families “and regrettably expect that much of this recent progress will be reversed”.

“The fundamental test for every government is whether, when it leaves office, those with the least in our society are in a better position than when it entered office,” he said.

“The choices that Government has made in recent Budgets will see the number of people in poverty grow.”

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    Mute whatistheseason
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    Jul 16th 2021, 9:57 AM

    I have volunteered to be part of the control group for this experiment

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    Mute John Drake - Zoomers is OUT NOW!
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    Jul 16th 2021, 10:06 AM

    @whatistheseason: Congratulations! You have earned a nomination for this year’s Darwin Awards.

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    Mute whatistheseason
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    Jul 16th 2021, 10:09 AM

    @John Drake – Zoomers is OUT NOW!: We’ll see, but it looks likely that Covid won’t get me considering I’ve been travelling around the world all the way through this pandemic. And this vaccine has not been tested like previous vaccines. Ever hear of what happened with thalmolide?

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    Mute whatistheseason
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    Jul 16th 2021, 10:11 AM

    *thalidomide

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    Mute Darren Norris
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    Jul 16th 2021, 11:47 AM

    @whatistheseason: it is a key WHO medicine. Was not able to know the effects on every type of person at the time but still a valid and important medicine. Are you trying to scare people on vaccines with Facebook jargon?

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    Mute SmallbutMighty
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    Jul 16th 2021, 12:33 PM

    @whatistheseason: except it has been tested to the same standards as every other vaccine.

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    Mute James Ward
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    Jul 16th 2021, 12:40 PM

    @whatistheseason: funny that the same company who created thalidomide, manufacture the biggest selling pain relief/stomach relief product in Ireland. maybe helps with back relief for tin hats as well!

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    Mute whatistheseason
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    Jul 16th 2021, 3:24 PM

    @SmallbutMighty: No because other vaccines have average of 10 years before they were cleared for the general population. There’s no substitute for time and experience no matter how sophisticated they think they are. Add to that the fact that the vaccine manufacturers got an 100% indemnity, any dissent on traditional/social media is immediately crucified, the main stream news has gone way over to the left, has a lot of propaganda and can’t be trusted, people are at their wits end with the lockdowns, most people are afraid of stepping out of line and the pharmaceutical industry is there to make a profit. You can’t just go along with everything you are told, you have to investigate. If there was an actual debate and more dissent on the issue I would be more inclined to take the vaccine. However the fact that everyone is singing off the same hymn sheet is the thing that worries me the most. Conforming to the majority opinion is nothing to be proud of, nothing. Wake up sheeple.
    https://www.youtube.com/watch?v=tNmx2Kj628M

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    Mute whatistheseason
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    Jul 16th 2021, 3:29 PM

    @James Ward: FTW I mean are you trying to make my point for me?!

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    Mute Paul
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    Jul 16th 2021, 10:08 AM

    Nice weather for it

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    Mute Jonathan
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    Jul 16th 2021, 11:19 AM

    Get them into you

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    Mute Rob
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    Jul 16th 2021, 9:56 AM

    Will those aged 35 and older be able to register through the portal for AZ or JJ? Leo mentioned they would at a briefing a few weeks ago but no mention of it since.

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    Mute Ryan O'Rourke
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    Jul 16th 2021, 10:12 AM

    @Rob: if you register it goes to a page and asks you if youre happy to receive Astra. No mention of J&J, presume that’s only through pharmacies?

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    Mute Rob
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    Jul 16th 2021, 10:53 AM

    @Ryan O’Rourke: The AZ option is there for all age groups?

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    Mute Rob
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    Jul 16th 2021, 11:04 AM

    @Rob: Its ok, I just registered but no option to choose AZ. No worries will decline my appointment when offered one and sit tight!

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    Mute Diarmuid Hunt
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    Jul 16th 2021, 11:13 AM

    @Rob: I just booked it and you are automatically register for pfizer and moderna and can also select Astrazeneca if you are willing to get it.

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    Mute Rob
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    Jul 16th 2021, 11:16 AM

    @Diarmuid Hunt: I’m 41 so that must be for younger age groups?

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    Mute Diarmuid Hunt
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    Jul 16th 2021, 1:49 PM

    @Rob: I’d imagine so as the AZ side effects though extremely rare have a higher occurrence in younger age groups.

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