Surge in numbers seeking financial aid

THERE HAS been a dramatic surge in the number of people on low incomes seeking financial help as a result of spiralling food …

THERE HAS been a dramatic surge in the number of people on low incomes seeking financial help as a result of spiralling food and fuel prices, according to support groups.

New figures compiled by the Society of St Vincent de Paul show there has been a 50 per cent increase in calls for the first five months of this year compared to the same period last year.

Latest figures show food prices have risen by more than twice the rate of inflation over the past year. Staples such as dairy products have jumped by 22 per cent, oils and fats have risen 15 per cent, while bread and cereals jumped by 12 per cent.

Meanwhile, the price of oil and petrol are also on the rise, while hikes in gas and electricity are expected over the course of the year. Prof John Monaghan of the St Vincent de Paul said these price rises are disproportionately affecting those on fixed low incomes.

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"We're seeing more and more people in work on low incomes who are finding it increasingly difficult to cope," he said.

He said the Government's plans to reduce the level of people in poverty were being "blown out of the water" as a result of the price hikes which have eaten up increases in social welfare.

"The Government has a commitment to reduce consistent poverty - ie those living on low income and suffering deprivation. But even if they manage to increase social welfare payments in the next budget, there is still a serious danger that people will be deprived of food and heating this winter," Prof Monaghan said.

He said he expects the society's funds will come under serious strain towards the end of the year due to the scale of demand for assistance.

The Vincentian Partnership for Social Justice also says a number of groups such as lone pensioners, young men and households with teenagers are particularly vulnerable to poverty as a result of the price hikes.

A recent study indicates that recent progress in the fight against poverty has stalled due to smaller social welfare increases in last year's budget and the rising cost of living.

The study looked at 27 households in six broad categories and found that in 2006 a minimum essential lifestyle was possible for only nine of them. This rose to 15 in the following year and remained at 15 for 2008.

Sr Bernadette MacMahon, the group's director, said: "While we recognise that progress has been made in the reduction of poverty, we are very conscious of the enormous financial burden which continues to oppress many low- income families and social welfare recipients."

The partnership says social welfare payments need to be maintained ahead of inflation, while the national minimum wage must keep pace with rising prices.

Child benefit should also be adjusted to take account of the increased costs associated with adolescents.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent