The Social Democrats have launched their Alternative Budget 2025 – titled ‘Building Services, Building Communities’ – which focuses on investment in public services to drive down the cost of living, targets support at those who need it most and prioritises children and families.

Investing in affordable housing; creating a public model of childcare; increasing parent’s benefit to cover the first 12 months of a child’s life; genuinely free education; targeted supports to those who are really struggling; and increasing core social welfare rates by €25 are the key measures in the party’s pre-Budget document, published today (September 26).

Party Leader Holly Cairns said: “Every day, for weeks, Government parties have been flying kites about budget measures, but we know they will follow the same playbook as previous budgets – spreading money around so thinly that nobody really notices and failing to invest in public services that would make a real difference to people.

“This lack of ambition and lack of imagination is why so many people feel left behind – and that the country is no longer working for them.

“We have a different approach. We do not want to waste the opportunity that significant budget surpluses represent to transform people’s lives in the long-term and lift people out of poverty. To do that, we must invest in public services that have been starved of resources for more than a decade.

“We must also target supports at those who need them most, increasing core social welfare rates by €25 while targeting additional supports at children and adults who are living in poverty. Last year, the number of children in deprivation increased by 15 per cent. This is an indictment of this Government and would not happen were the Social Democrats in office.

“Last year, the Government spent just an additional €64m on disability services. Our budget would spend approximately 10 times this amount to introduce a €30 weekly cost of disability benefit; address shameful waiting lists for services; and build capacity to help disabled people lead independent lives.

“Our budget is underpinned by equity and fairness; a focus on investment in children and families; and using State resources to the build quality public services that everyone can benefit from – rather than disproportionate benefits accruing to the highest income earners.”

“Ireland is a rich country, but there is huge inequality. We must grasp the opportunity to address this now – and this is what our budget does.”

Key Measures in the Alternative Budget

The Social Democrats’ Alternative Budget 2025 proposes a range of measures aimed at improving public services, reducing the cost of living, and supporting vulnerable groups. Here are some of the key proposals:

• Building 12,000 new social homes and 10,000 affordable homes – including 5,000 cost rental and 5,000 affordable purchase homes.
• Extending paid Parent’s Leave by four weeks per parent to cover the first 12 months of a child’s life and increasing weekly Maternity, Adoptive, Paternity and Parent’s Benefit Payments to €350.
• Begin rolling out a public model of childcare
• Increasing core social welfare payments by €25 per week.
• Raising the Qualified Child Increase, paid to the most vulnerable children, for over 12s and under 12s by €15 and €6 respectively.
• Introducing a €30 per week Cost of Disability payment.
• Making primary and secondary education in Ireland fully free.
• A phased reduction of third level student contribution fees, starting with a €1,000 decrease for 2025.
• Funding for extra posts across GP services, Child and Adolescent Mental Health Services (CAMHS) and community therapies to build capacity at primary care level.
• Capitalising a Climate Transformation fund that has a focus on off-shore wind energy and a commitment to fit solar panels on 100,000 homes and buildings per year.
• €1 off-peak fares for public transport
• Rolling out free GP care for under 12s.
• A major investment in primary care and e-health
• Increasing tax credits by €450

Addressing the Cost of Living Crisis

The Social Democrats argue that the Government’s focus on short-term measures, such as tax cuts for the better-off, is not enough to address the cost of living crisis. They believe that a more long-term approach, focused on investing in public services, is necessary.

Social Democrats finance spokesperson Róisín Shortall said: “The Government regularly talks about putting money back in people’s pockets. These days, however, this phrase seems to mean tax cuts for the better off, with a focus on changing tax bands which gives the same benefit to the highest earners as it does to middle-income households, while offering nothing to those on low incomes. This needs to change.

“While it’s important to give some relief to households while prices are still rising. The majority of available resources should be invested in public services and reductions in the cost-of-living in areas like housing, healthcare, childcare, education, transport and energy.

“The cost-of-living crisis we have experienced this decade has been significantly exacerbated by the decades of underinvestment that preceded it. We must address the chronic deficits that exist across our public services. That is our priority.”

Investing in the Future

The Social Democrats’ Alternative Budget also includes a number of proposals aimed at investing in the future, such as a €5 billion renewable energy fund and a commitment to building 10,000 additional affordable homes each year.

The party believes that these investments are necessary to ensure that Ireland has a sustainable and equitable future.

The Social Democrats argue that the government's budget is not addressing the real issues facing the Irish people, and that their alternative budget offers a more comprehensive and equitable approach. They argue that by investing in public services and supporting vulnerable groups, they can build a stronger and fairer society for all.

The Social Democrats' proposals have been met with mixed reactions. Some have praised the party for its focus on public services and its commitment to tackling inequality. Others have criticized the proposals as being too expensive and impractical. The debate over the Social Democrats’ alternative budget is likely to continue in the lead-up to the next general election.

What’s Next?

The Social Democrats' Alternative Budget is a comprehensive plan that sets out the party's vision for the future of Ireland. It remains to be seen how much of the party's proposals will be adopted by the government in the upcoming budget. However, the Social Democrats’ alternative budget has sparked a debate about the priorities of the Irish government and the future of the country.

The government is expected to announce its budget on Tuesday, September 30, 2024. It will be interesting to see how the government's budget compares to the Social Democrats' alternative budget, and how the two plans will be received by the public.