Friday 9 December 2016

Single income family's social welfare concerns

Published 09/12/2010 | 10:26

Fernando: I’m unemployed and have been receiving jobseeker’s benefit of €196.00 per week since March of this year. I have just applied for jobseeker’s allowance.

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My wife is earning €34,000 per year, we have one child and we pay €800 rent every month. How badly will this budget affect us?

There is more to consider than the budget in this scenario.

Fernando is currently receiving job seekers benefit of €196 per week which is not means tested. The job seekers allowance is means tested and Frenandos wife’s income would be taken into account. It is estimated that Fernando’s job seekers allowance will be reduced to €178 for 2011 taking account of the social welfare reductions announced in the budget and his wife’s earnings. Child benefit will be reduced by €120 per year.

Furthermore, the tax changes announced in the budget mean that Fernando’s wife’s tax bill will be increased by €356.

The above means that this couple will be €1,412 less well off in 2011.

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