Through proposed improvements in three measures, households will benefit from substantial improvements in their income. See how:
The rise in the tax threshold and an improved tax refund cheque will average €300 more disposable income. Over a five-year period, the children’s allowance will be improved by €450 per child. This, while the in–work benefit will improve by €200 per child.
A couple where both work and earn the average wage, and have two children, will have a higher income of €6,850 over the next five years. This could exceed €9,000 if they send their children to extra-curricular activities (€300 per year) or if one of their children continues to study beyond the obligatory age (€500 per year for three years).
In case this couple no longer has, or never had, children under the age of 16, the improvement will be of €3,150.
Moreover, if you consider a couple who together earn €60,000 but have one child, disposable income will rise by €5,000.
A single parent on the average wage, with one child, will benefit from an increase of €3,425.
A couple where only one of them works and earns an income of €25,000 will see a positive impact of €1,600.
Finally looking at a single person earning the average wage, income will improve by €1,275.
These examples illustrate how widespread the positive impact of Labour’s manifesto measures is. Every working person will see substantial improvements of thousands of euro.
What about the PN manifesto?
In contrast, the PN manifesto results in a quarter of a million workers losing their refund cheque. The minority who receives tax credits that are high enough to make up for losing out on a refund cheque will get up to €500 over a five-year period. But the PN manifesto does not even mention the in–work benefit, let alone improves it. As regards children’s allowance, the increase is of just €150, or €750 over five years.
This means that with the PN’s proposals, a couple who both work and have two children would see an improvement of €2,500 or just a third of the improvement with the Labour Party’s proposals. The same percentage of lost improvement applies to the other examples.
As regards pensioners, while the PN is not giving any guarantee of increases, the Labour Party is giving a guarantee of a €15 per week increase. In addition, there will be free medicines, an increase of €200 in the senior citizens grant, better eligibility for energy benefit (a benefit of €314 per year), as well as an adjustment for those with a pension on the married rate.
In total this is expected to lead to an overall improvement approaching €10,000 over a five-year period.
