NWCI cautiously welcomes changes to draft Insolvency Guidelines

Published: Thursday, April 18, 2013

The National Women's Council of Ireland welcomes changes to the draft Insolvency Guidelines and the reassurance that nobody will be asked to leave their employment due to high childcare costs. The NWCI cautions, however, that several of the guidelines still risk putting unnecessary pressure and hardship on indebted families struggling with their household budget.

Ann Irwin, Policy Officer with the National Women's Council of Ireland (NWCI) said,

'We welcome that the guidelines are based on the model of consensual budgeting and that the draft guidelines in relation to childcare have been amended. However, while the guidelines view childcare as a legitimate expense in relation to employment, there is a lack of recognition for other reasons such as access to education or training and personal reasons. There is also an overemphasis on pre-school childcare. Afterschool care is equally important for families. '

She added,

'Some of the allowances risk putting unnecessary pressure and hardship on families, in particular in relation to food and medical expenses. €207 on food for one adult and four children in not enough as is €191.57 for two adults and four children. Allowances for medical expenses are wholly inadequate for individuals and families and risk putting their long-term health at risk.

Some of the allowances do not make sense.  For example the monthly food allowance for one adult and four children is €828.13 a month. For a household with 2 adults and the same children, it is €766.31. We call on the Insolvency Service to review these allowances and apply sufficient flexibility in adapting these to each family context.'

She concluded,

 'We know that it is women who are the primary negotiators when it comes to debt in families and we also know that it is primarily women who do the household budgeting. We are concerned that this will add an additional stress on to women and families that are already struggling to cope.'

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For more information, please contact Silke Paasche, Communications Officer, National Women's Council of Ireland, Tel. 085 858 9104.