Minimum Income Schemes in Ireland:

a context

Dr Micheál CollinsNERI (Nevin Economic Research Institute)Dublinmcollins@NERInstitute.net @ MLGCollinswww.NERInstitute.net

Round Table: Action Plan for Adequate Income7th October 2014

Outline1. Income in Ireland

2. Austerity in Ireland

3. Poverty & Low Pay

4. Recovery

5. Priorities

6. Lessons from the Past

1. Income in Ireland

2. Austerity in Ireland • from Social Justice Ireland – Budget Choices 2014

(June) and Poverty & Income Distribution (July)

3. Poverty & Low Pay

The Earnings Distribution: the bottom, the middle, the top and the very top

• Bottom: incomes between €0 and €15,000 = 26% of earners (539,702 tax cases)

• Middle: incomes between €15,000 and €50,000 = 52% of earners (1,056,216 tax cases)

• Top: incomes between €50,000 and €100,000 = 17% of earners (354,570 tax cases)

• Very Top: incomes above €100,000 = 5% of earners (99,129 tax cases)

http://www.nerinstitute.net/blog/2014/09/09/the-earnings-distribution-the-bottom-the-middle-th/

4. Recovery• Reviewed in our recent

QEO• Slowly taking hold• Regional divides remain• A key time to establish

where we are going• Not back to where we

were!• Budget 2015 – a formal

turning point www.NERInstitute.net

5. Prioritieso Recovery in context of continued economic threats &

challenges• LT unemployment / low investment / public service gaps /

high national debto Prudent to be cautiouso Budget 2015 is about priorities

• recommend investment focus• no reduction in overall tax revenue (room to move around…)

o More focus on:• public services• public investment• a fair recovery - relevance of adequate incomes

6. Lessons from the Past• Potential for divides to open further as recovery

develops• Wage increases move ahead of welfare rates• Opened huge poverty gaps in the early 2000s• % increases versus nominal increases• Need for broad-based recovery with benefits to all

o these are likely to be slowly deliveredo benefits does not just mean €

• Now is the time to plan to avoid past mistakes

Minimum Income Schemes in Ireland:

a context

Dr Micheál CollinsNERI (Nevin Economic Research Institute)Dublinmcollins@NERInstitute.net @ MLGCollinswww.NERInstitute.net

Round Table: Action Plan for Adequate Income7th October 2014