Press Release

Unite expresses disappointment at budget hit for low income earners

14 October 2008

Unite, the trade union has expressed disappointment at measures in today’s budget which will hit hardest those who can least afford it.

“The increase in VAT will have the hardest impact on those on the lowest income,” said Unite Regional Secretary Jimmy Kelly. “It is a fixed tax increase which will affect the price of everyday essentials regardless as to whether you are rich or poor.”

“The decision not to increase tax credits and to impose an across the board levy of one per cent on income will also have a dramatic impact on the draft national pay deal which is currently being voted on by union members. Using the Minister’s own inflation figure of 2.5 per cent for 2009, the ‘pay rise’ being offered will in effect mean that someone on the average PAYE income will see a reduction of over €500 per year in the value of their wage.”