12 October 2016
Children’s Perspective of Budget
2017
October 2016
Introduction
There is a strong focus on early years care and education in Budget 2017, with a boost
to both new and existing schemes; however there is not nearly enough in this year’s
budget to really make a dent into the atrociously high child poverty figures. Changes in
education in particular are greatly disappointing and will do little to help struggling
families.
Budget 2017 is characterised by populist, piece-meal measures which give little but
cost a lot. It is disappointing to see the Government persist with its half a per cent cut to
the Universal Social Charge (USC) in the face of warnings from all quarters that this is
a pointless and imprudent move that will see the exchequer forgoing €335m in 2017. In
essence, the combination of measures announced is characteristic of a budget which
does a little for everyone but little for anyone.
Taxation and Welfare
Key Changes for Children to improve family income:
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€5 increase in all weekly payments e.g. lone parents, jobseekers, carers etc.
Income disregard for lone parents increased from €90 to €110 per week
€15 increase in Guardian’s Contributory and Non-Contributory payments
Christmas bonus for people in receipt of social welfare increased to 85% of their
weekly payment
Half a per cent decrease in the lowest three rates of USC.
While there is something for almost everyone in Budget 2017, across the board the
benefits are fairly miniscule. The much publicised and debated cut to the USC will
mean anyone paying the tax will be from €60 to €355 better off per year. To put that in
context that’s between €1.15 and €6.80 more in someone’s pocket per week.
Barnardos firmly believes the €335 million it cost to deliver this paltry reduction would
have been much better spent investing in education, health, housing supports, or
virtually anywhere across our creaking public services.
There was a €5 increase to all weekly social welfare payments, a welcome but populist
move which will likely have little impact on people’s day to day lives. Unfortunately, as
with the previous 17 budgets, social welfare increases will not apply to the around a
thousand children living in direct provision centres who will continue to receive a
measly €15.60 per week.
1 | Barnardos 2015
12 October 2016
Barnardos welcomes the income disregard for lone parents. Added to the increase in
social welfare, the new subsidised childcare system and back to education supports
announced it means lone parents were one of the vulnerable groups which benefited
the most in Budget 2017; a long overdue change. Payments to guardians will also
increase from €161 to €176 next year.
Many of the changes to social welfare will not come into effect until March 2017. The
exact date is yet to be confirmed.
Child Protection and Welfare
Key Changes for Children

€37 million additional funding for Tusla.
The Department of Children and Youth Affairs has set aside €37 million in additional
funding for Tusla in 2017; a similar increase to Budget 2016. Barnardos welcomes this
news; however any increase must result in better services and outcomes for children.
Currently thousands of the child welfare and protection cases referred to Tusla are still
awaiting allocation of a social worker. Progress has been made with the number of
cases waiting for allocation falling from 7,233 in July 2015 to 5,050 in July 2016; but the
number of children waiting remains unacceptably high.1 Additional resources for Tusla
must translate into more frontline staff and fewer children at risk on waiting lists. It must
also see greater investment in the provision of family support services and other
prevention and early intervention approaches.
Early Childhood Care and Education
Key Changes for Children

€35 million for a new subsidised childcare scheme
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Available to families earning less than €47,500 per year
For children aged 6 months up to 15 years
In all childcare providers, including registered child minders.

Universal subsidy of up to €80 per month will be available for all families for
children aged 6 months to 3 years.

€86 million for ECCE and Access and Inclusion Schemes.
Like last year, funding for Early Childhood Care and Education (ECEC) received a
significant boost in Budget 2017. All children deserve the quality care and education so
crucial to their development in their early years so continued commitment to funding in
this area is most welcome; particularly in light of the fact that Ireland lags far behind
other European and OECD countries on investment in ECEC.
Following much public and political debate and speculation the Government has
announced a new subsidised childcare scheme for families earning less than €47,000
1
Tusla, (2016) Monthly performance and activity dashboard July 2016
2 | Barnardos 2015
12 October 2016
per year. The threshold is based on household income after tax, meaning it will equally
benefit single parent families. A subsidy of up to €195 per week (depending on income
level) will be available, with parents paying any remaining fees directly to the provider.
The subsidy is for children aged 6 months up to 15 years of age and will be available to
both Tusla registered crèches and childminders. Unfortunately, the number of current
registered childminders is very small so more effort needs to be made to include them
given that it is the preferred choice of parents. The new scheme will replace a variety of
current schemes but the Department of Children and Youth Affairs have indicated all
families will be better off under the new scheme.
Barnardos particularly welcomed the introduction of a universal subsidy of up to €80
per month paid directly to their childcare provider. The subsidy for children aged
6months to 3 years is based on full time care of 40 hours but will be available at a
lower rate for fewer hours. As with the subsidy announced for lower income families,
this subsidy will be available for use in Tusla crèches and registered child minders. It is
finally recognition that participation in quality early years environment is beneficial for
children’s development and future as opposed to solely being needed to facilitate
parents to take up employment.
The new subsidy models announced will come into effect in September 2017.
Funding will continue for the ECCE scheme to provide two years free preschool for all
children. The funding includes a small increase to acknowledge the substantial time
and resources required by providers to administer the scheme. This is an area that will
require more investment into the future to ensure quality professional standards and
sustainability of services are supported.
The Access and Inclusion Model Scheme (AIM) designed to increase participation of
children with special needs in early years care and education has also received
continued funding for 2017.
Education
Key Changes for Children
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2,515 new teaching posts
€5 million for implementation for an Action Plan for Educational Inclusion
50,000 more children to benefit from school meals programme
€500 Cost of Education Allowance for all parents in receipt of Back to Education
Allowance
€33 increase in Back to Education Allowance for under 26 year olds.
There is little to help families living in poverty with education in Budget 2017. Despite
inclusion in the Department of Education’s Action Plan no funding was announced for
school books or an increase in the capitation paid to schools. No change means the
viability of current school book rental schemes are in jeopardy, parents will continue to
pay high costs for their child’s school books and schools will continue to be forced to
make up the shortfall in funding by targeting parents for fundraising and levying hefty
‘voluntary contributions’.
3 | Barnardos 2015
12 October 2016
An additional 2,515 teaching posts will be broken up into 1,500 new teachers, 900 new
resource teachers and 115 Special Needs Assistants. These extra posts will allow the
Department of Education to keep a pace with demographic changes, cope with junior
cycle reform and create new middle management posts; however disappointingly they
will not do anything to reduce class sizes. From September 2017 guidance counsellors
will be moved outside of the general quota for teaching staff at a ratio of 19 pupils to
one counsellor as was the case previously.
The Department of Education has also allocated €5 million for implementation of its as
yet unpublished Action Plan for Educational Inclusion. Barnardos fed in to the
consultation of this plan which is aimed at tackling disadvantage and will comment
further on its publication.
The Department of Social Protection announced the €5.7 million increase in funding for
the School Meals Programme. This funding will mean 50,000 new children will receive
breakfasts and lunches free of charge in their school. Importantly, this will include
35,000 pupils in non-DEIS schools previously unable to avail of the scheme. Food
poverty is a problem on the rise and many children affected do not go to DEIS schools
so this is a most welcome announcement.
A number of measures to help parents and young people with the cost of accessing
higher education were announced in this year’s budget. A €500 Cost of Education
Allowance will be available to parents and young people in receipt of the Back to
Education Allowance. The Back to Education Allowance will also increase for those
aged under 26 on Jobseekers Allowance from €160 to the full adult rate of €193.
Much of the changes announced by the Department of Education will come into effect
in September 2017.
Health
Key Changes for Children
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Automatic medical cards for children in receipt of domiciliary care allowance
Tax on sugar sweetened drinks
€15 million for the National Treatment Purchase Fund
50c increased excise duty on a packet of cigarettes.
Unlike budgets of recent years which heralded the roll out of free GP care first for
under-6s and then under-12s, there was little in this year’s health budget targeting
children. The announcement that all children in receipt of domiciliary care allowance
will automatically receive medical cards is very welcome; yet that this vulnerable cohort
of children were not already automatically included in the scheme is rather baffling.
The biggest announcement in relation to health is perhaps the Government plan to
follow the UK in introducing a tax on sugar sweetened drinks. This move is strongly
advocated by the World Health Organisation as a means to tackle obesity.2 While
2
World Health Organisation, (2016) WHO urges global action to curtail consumption and health impacts of
sugary drinks http://www.who.int/mediacentre/news/releases/2016/curtail-sugary-drinks/en/ (accessed 12
October 2016)
4 | Barnardos 2015
12 October 2016
obesity disproportionately affects people living in poverty it is important to note it is
often a sign of malnutrition due to food poverty. Revenue from a tax on sugar
sweetened drinks must be used to tackle the growing food poverty epidemic.
Barnardos will engage with the Department of Health consultation announced in the
Dáil yesterday.
The National Treatment Purchase Fund was allocated an additional €15 million to
reduce hospital waiting lists, bringing its total funding to €20 million in 2017. A 50c
increase in excise duty on cigarettes came into effect at midnight on the 11th of
October; a small but valuable step in reducing the number of young people taking up
smoking.
Housing
Key Changes for Children
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€28 million investment in emergency accommodation
€105 million for the Housing Assistance Payment
Decrease in the personal contribution towards rent for 18-24 year olds on
Jobseekers Allowance
€9 million allocated for Traveller specific accommodation
The allocation of €1.2 billion of Government spending to implementing its housing
action plan ‘Rebuilding Ireland’ is most welcome. This announcement comes in the
context of around 1,000 more children living in emergency accommodation than this
time last year.
Extra funding for emergency accommodation is welcome; however these families need
long term homes not short term beds. More needs to be done to prevent families
becoming homeless and Barnardos would like to see more money invested in
prevention measures.
There will be a €105 million increase in funding for the Housing Assistance Payment
(HAP), a move which the Government claims will help a further 15,000 households.
This would be extremely welcome, yet HAP depends on availability of private rented
accommodation and with current chronic undersupply and many landlords reluctance
to avail of HAP in many areas there is great uncertainty surrounding the likely success
of this funding.
Barnardos welcomes additional funding for Traveller specific accommodation, an area
in need of much greater action. Also welcome is the decrease in the personal
contribution towards rent paid by 18-24 year olds on Jobseekers Allowance. The
threshold moves from €30 to €10 for those on the €100 weekly rate and from €30 to
€20 for those on the €144 to €160 weekly rate. However, this comes in the context of
these young people being the only weekly social welfare recipients not to receive an
additional €5 per week.
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Conclusion
This is the first Budget of the Partnership Government and there has been much
rhetoric about ‘New Politics’ in the lead up to its announcement. The result of decision
by cross- party and multi- interest agreement is a lack lustre budget which tried to
please everyone and makes little difference to anyone.
Areas which did see gains such as childcare and lone parent supports are very
welcome, yet in both instances they come after such a lengthy period of neglect by
Government in terms of resource allocation that the changes in Budget 2017 must be
viewed as a first step on a long road to where we should be.
6 | Barnardos 2015