Social Democrats call for minimum wage, welfare rises in Alternative Budget

The Social Democrats have joined members of the opposition in launching their Alternative Budget.

The party, tapped as potential coalition partners based on current polling, have announced a suite of measures ahead of next week’s Budget, offering a glimpse of the policies they would pursue.

Headline figures from the announcement come in the form of the party calling for a rise in the minimum wage to €13.30, a €25 rise in core social welfare payments, a €1 off-peak fare to incentivise public transport use at off-peak times while investing to increase capacity across bus, Luas, Dart and rail services and the delivery of 10,000 affordable homes within a year.

Welfare is at the heart of the announcement, with their proposals to increase paid leave for parents to 12 months, with an increase in the rate of Maternity, Adoptive, Paternity and Parents’ Benefit to €350, up from €262.

Speaking at the launch, party deputy leader and housing spokesperson Cian O’Callaghan said “the housing disaster is the single biggest issue we face as a society. It is causing devastation across the country. We need an additional €1.2 billion investment in the provision of affordable homes – a near doubling of the current inadequate Government target – to  ensure the locked-out generation can afford a home to rent or buy.”

“We must also do something about extortionate housing costs. Rents are now in the stratosphere and the renters’ tax credit must also be increased so that it puts one month’s rent back in renters’ pockets.”

Finance Spokesperson Róisín Shortall said “disability services across the country are fragmented and threadbare.”

“There has been almost no recognition from this Government of the additional costs of having a disability – which can be up to €11,000 per year. The Social Democrats would introduce a €30 per week ‘Cost of Disability’ payment, paid in addition to core welfare rates, which we would also increase by €25 per week.”

The party looks to capture the same environmental concern that propelled the Green back into coalition in 2020, with one of the more eye-catching policies proposing spending the much-touted budget surplus on a €5 billion climate transformation fund.

Under their proposals, a new semi-State company would be set up to invest in off-shore wind energy, and “more than double” the grants for solar energy.

“We are running out of time to meet our climate targets and make essential investments in clean energy. Now is the time for the State to invest in renewables – to cut energy costs for families, improve our energy security and get a long-term and recurring financial return for the people of this State from its natural resources,” said party climate spokesperson Jennifer Whitmore.

“As it stands, private companies are reaping most of those rewards.”