NATIONAL MINIUMUM WAGE

NATIONAL MINIUMUM WAGE Submission to the Low Pay Commission FEBRUARY 5, 2019 SVP SOCIAL JUSTICE AND POLICY TEAM

Contents Introduction... 2 In-work poverty: key issues... 2 Trends 2010-2017... 2 The experiences of low income working households with children... 4 Making work pay... 5 Income adequacy and labour market conditions... 5 Housing costs and benefits... 6 Childcare... 8 In-work income supports... 9 Income tax... 9 Setting the Living Wage as a Target... 10 Appendix: Case studies of working families employed on the NMW... 11 1

Introduction The Society of St Vincent de Paul (SVP) welcomes the opportunity to contribute to the consultation on the National Minimum Wage (NMW). SVP is the largest charity of social concern in Ireland and the primary aim is to provide direct assistance to low income households. Informed by the experiences of our members and the people we assist, we work towards addressing the root causes of poverty and inequality through our policy and advocacy work. The issues of low pay, inadequate income, precarious work and the high cost of living are key contributing factors to poverty and deprivation among the households SVP assist the majority of which are households with children. SVP regularly meet working families who are experiencing significant stress and strain as they try to cover bills, housing and everyday costs. It is from this perspective that SVP makes this submission to the Low Pay Commission (LPC). In-work poverty: key issues Trends 2010-2017 In-work poverty is a key concern of SVP and in 2017, 14% of those living below the poverty line and 26.2% of those experiencing deprivation were at work (CSO, 2018). 1 More detailed data from Eurostat show the longer term trends in in-work poverty and its relationship to the poverty threshold, measured as 60% of median income. The rate of in-work poverty for a single adult increased from 8.7% in 2014 to 12.8% in 2016, falling to 11.1% in 2017. However, to give a complete picture of trends over time it is also important to examine changes in the poverty threshold. In 2011, there was a significant increase in the rate of in-work poverty, but the poverty threshold fell significantly. This suggests that incomes just above the threshold fell faster than the median. The drop in the in-work poverty rate from 2012-2014 reflects a fall in median incomes more generally. In the last number of years, there has been an increase in the rate and the threshold, which suggests that median income is increasing, but the lowest incomes are remaining stable or are increasing at a slower pace. This pattern indicates that recovery in income from employment in lower income groups is not recovering as fast as higher income groups and if this trend continues, we are likely to see further increases in working poverty. In 2017, Ireland had the fifth highest incidence of low pay in the OECD, which refers to the share of workers earning less than two-thirds of median earnings. 2 The remit of the LPC in determining an appropriate floor that no one should be expected to work below, therefore remains of paramount importance. 1 CSO (2018) Survey of Income and Living Conditions 2017 http://www.cso.ie/en/releasesandpublications/er/silc/surveyonincomeandlivingconditions2017/ 2 OECD (2018) Wage Levels. https://data.oecd.org/earnwage/wage-levels.htm 2

% Euro % Figure 1: In-work poverty trends, EU-SILC 2010-2017 14000 13500 13000 12500 12000 11500 11000 10500 15.8 11.1 12.8 11.8 10.9 10.2 11.1 8.7 2010 2011 2012 2013 2014 2015 2016 2017 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Poverty threshold (single adult) In-work poverty rate (single adult) As already mentioned, the majority of households SVP support are families with children, typically headed by one parent. Data from the Labour Force Survey (LFS) shows an increase in the employment rate of lone parents from 54% to 58% between 2016 and 2017. 3 However, there has also been an upward trend in working poverty among this group. Further data from EU-SILC and Eurostat show that the rate of in-work poverty is almost 5 times higher among one parent households compared to other households with children. 4 Of particular concern is that since 2012, the rate of in-work poverty among lone parents increased from 8.9% in 2012 to 20.8% in 2017. Figure 1: In-work poverty among households with children, EU-SILC 2010-2017 25.0 20.0 20.3 20.8 15.0 10.0 5.0 11.1 10.0 5.9 15.8 10.9 3.9 10.2 8.9 6.2 14.0 11.8 10.5 11.8 10.9 8.7 4.9 5.4 5.3 12.8 11.1 4.3 4.2 0.0 2010 2011 2012 2013 2014 2015 2016 2017 Single person Two or more adults with dependent children Single person with dependent children In 2012, the reforms of the One Parent Family Payment included the introduction of conditionality to engage in paid employment or activation programmes based on the age of their youngest child. The reforms have been the subject to much criticism, specifically that the changes were implemented during a period of recession and high unemployment, in the absence of good quality affordable 3 Source: Eurostat Labour Force Survey (lfst_hhptety). 4 Source: Eurostat European Survey of Income and Living Conditions (ilc_iw02). 3

childcare, and without recognising the additional practical and financial challenges of parenting alone. In particular, the decision to abolish the features of the One Parent Family Payment which support lone parents to take up part-time employment was widely criticised. This has made it more difficult for lone parents with low earnings potential and high levels of caring responsibilities to access employment, education or training. The validity of these concerns have been reflected in recent research which showed that the reforms increased poverty among lone parents 5 and reduced the incomes of those already in employment. 6 Analysis of data from other European countries shows that this pattern is not unique to Ireland and that increases in the labour market attachment of lone parents has not reduced their poverty risk. 7 This is primarily due to a higher propensity for lone parents (typically women) to be employed in low paid, variable hours and insecure employment. 8 Furthermore, while low replacement rates and low marginal tax rates are linked to higher employment among lone parents (in some countries), they do not enable access to higher paid employment. 9 In countries where there are lower wage differentials, more flexible working arrangements, and subsidised childcare is available, the labour market attachment of lone parents is higher, and rates of poverty are lower. 10 The experiences of low income working households with children In 2018, SVP commissioned the Vincentian Partnership for Social Justice (VPSJ) to carry out qualitative research on the experiences of household with children unable to afford a Minimum Essential Standard of Living. 11 In total, 30 families who had an income below what was required for a minimum standard of living took part in the study. Half of the households (n=15) had a least one parent who was working. Generally, these families received the Working Family Payment (WFP), and retained benefits such as the Medical Card but in all cases, their income was inadequate to meet their minimum needs as determined by the VPSJ Budget Standards Research. In one case a two parent dual earner households combined wages did not result in income adequacy. In other cases, some parents combined wages meant they were not entitled to any social transfers, in-work supports or benefits such as the Medical Card. Employed lone parents in the study tended to only be able to work part-time due to the childcare issues. 5 Indecon (2017) Independent review of the amendments to the One-parent family payment since January 2012. https://www.welfare.ie/en/downloads/deasp_ofp_review.pdf 6 ESRI (2018) Lone-parent incomes and work incentives. https://www.esri.ie/publications/lone-parentincomes- and-work-incentives 7 Jaehrling, K., Kalina, T. and Mesaros, L. (2015) A paradox of activation strategies: why increasing labour market participation among single mothers failed to bring down poverty rates, Social Politics, Vol 22 (1), pp86-110. 8 Murphy, M. (2016) Low road or high road? The post-crisis trajectory of Irish activation, Critical Social Policy, Vol 36 (1), pp I-21. 9 Bradshaw, J., N. Finch, E. Mayhew (2003) Financial Incentives and Mother s Employment: A Comparative Perspective paper for the Foundation in International Studies in Social Security. Sigtuna, Sweden June14-17, 2003. 10 OECD (2011) Doing Better for Families https://www.oecd.org/els/family/47719022.pdf 11 Vincentian Partnership for Social Justice (2018) Stories of Struggle: Experience of living below the Minimum Essential Standard of Living. https://www.svp.ie/social-justice/publications-submissions/publications/storiesof-struggle-2018.aspx 4

More women like me would work full-time if there was free or more accessible childcare, especially during the summer holidays, if there was a proper childcare scheme for low income families. The combination of low pay and variable hours made it difficult to plan and manage household finances. Occasionally, the weekly income of families in precarious employment did not cover the transport and childcare costs. I found a job as a carer but I had to travel and I had to work days and nights. I couldn t continue working because of the different hours, I started with twenty hours a week and this went down to just eight. I couldn t afford childcare and travel.i got small jobs locally after that, I would take anything I could get but one shop closed down and in another job the owner couldn t afford to keep a paid worker. I work nights and my parents mind my children while I m working, they spend the night at their grandparents. Then I sleep while they re at school, but I get little sleep, especially at the weekends and school holidays. The majority of families were in low paid employment, including as hotel porters, food service assistants, factory workers, entry-level administrators and carers. Others were tradespeople that had been impacted by the economic downturn and could not be sure of getting work. Despite this growing body of evidence of the difficulties of working parents in making ends meet, we do not have any comprehensive data on the labour market conditions and experiences of these groups. The Labour Force Survey has data which show the relationship between employment and household composition but does not include information on pay and household composition. To ensure that employment among parents, and in particular lone parents, increase their earning potential and eliminate their poverty risks, better data and analysis is required. SVP would welcome a specific focus of the LPC on this issue. Making work pay Income adequacy and labour market conditions Any changes in NMW need to be considered in the context of their interaction with changes to the tax and benefit system, including housing and childcare subsidies. It is often incorrectly assumed that Ireland has relatively high levels of benefit generosity and this has contributed to fears that it may be a disincentive to employment, particularly for those with children. However, a report from the ESRI showed that 80% of those in receipt of unemployment benefits would see their incomes increase by 40% when taking up employment, just 3% would be financially worse off. 12 This incentive to take up employment is also demonstrated in Figure 1 which shows Ireland s replacement rate for single adults and lone parents are below the OECD and EU28 average, but slightly higher for couples with two children. We also compare Ireland to Denmark as it is a country with high rates of employment and low rates of child and family poverty. In all household types replacement rates in Denmark are the highest in the EU. 12 Savage at al (2015) A profile of financial incentives to work in Ireland. https://www.esri.ie/publications/aprofile-of-financial-incentives-to-work-in-ireland 5

% The link between generous benefits and positive social and labour market outcomes is not surprising. Research shows that adequate social welfare can help unemployed people find a better job as a decent financial buffer enables jobseekers to wait for a job offer that matches their skills instead of having to take the first offer that comes their way. 13 This usually means they will keep the job for a longer time and lowers their risk of becoming unemployed again. Looking at this issue more closely another study using data from 20 European countries and the United States between 1992 and 2009, found that association between benefits and unemployment depended heavily on the types of opportunities available. In countries where there are strong protections for workers, there will be more attractive job opportunities, and in those circumstances, generous benefits work to improve job to worker matches. However, if the jobs on offer are low paid or precarious, people are more likely to remain unemployed. 14 The enactment of the Employment (Miscellaneous Provisions) Act 2018 is welcome as it will give workers a greater deal of certainty when it comes to the predictability of their hours. However, the adequacy of the NMW to provide a decent standard of living for those who want to take up employment is a critical consideration. The LPC continues to have an important role in ensuring that an appropriate floor is set and that the increases in in-work poverty are mitigated through adequate NMW rates. Figure 1: Net replacement rates in unemployment including housing benefits 2018 120 100 80 60 61 69 68 84 72 90 89 91 78 77 79 78 40 20 0 Single person Single person with 2 children Couple with 2 children Ireland EU 28 OECD Denmark Source: OECD Tax and Benefit Model, 2018 Housing costs and benefits Examining data from the OECD further, we see that housing costs are a significant barrier to employment in Ireland. Figure 2 shows the Marginal Effective Tax Rate (METR) of entering NMW employment for Ireland and the EU28. In the Irish case, housing benefits (Rent Supplement) have a 13 Gangl, M. (2004) Welfare states and the scar effects of unemployment: A comparative analysis of the United States and West Germany, American Journal of Sociology Vol 109, no. 6. 14 Biegert, T. (2017) Welfare benefits and unemployment in affluent democracies: the moderating role of the institutional insider/outsider divide, American Sociological Review, Vol 82, no 5. 6

dramatic impact on METR, for example increasing from 66% to over 102% for a couple with 2 children. In the EU28, the impact is minimal. Housing costs, particularly for those on low incomes living in the private rented sector, continues to be a central concern of SVP. Rent supplement has been identified as a significant barrier to those considering taking up employment or increasing their hours at work. The loss of rent supplement on taking up full time employment (over 30 hours) means that someone in work on a low income will be unable to meet their housing costs. A recent analysis from the ESRI shows that the Housing Assistance Payment (HAP) can significantly improve the transition from welfare to work for those in long-term receipt of Rent Supplement as eligibility isn t linked to hours worked. 15 Importantly, however, this analysis also brought to light an issue SVP members have raised the variance in the application of Differential Rents for HAP and social housing tenants across local authorities. This relates to differences in minimum and maximum contributions, definitions of means-testable income (for example some local authorities include WFP in the calculation of assessable income, and others do not), and the rate at which contributions increase with this income. This means that the financial incentives for work will vary significantly between different local authorities. Furthermore, as HAP doesn t offer security of tenure and many tenants pay a top-up directly to their landlords, SVP have serious concerns about the suitability of private rented housing subsidies in addressing housing costs among low income workers. Investment in local authority social housing and greater consistency in the application of the Differential Rent scheme is a more sustainable and appropriate policy response to the barriers to work associated with housing costs. SVP would welcome a engagement between the Department of Planning, Housing and Local Government and the LPC on the impact of variance in the Differential Rent Scheme on low income households. Figure 2: Effective tax rate of entering NMW employment including and excluding housing benefit 120 100 90 102 80 60 58 58 72 66 68 67 69 64 62 40 20 0 Single person Single parent with Couple with two with no children two children children 19 Ireland Single person Single parent with Couple with two with no children two children children EU28 Including Housing Benefit Excluding housing benefit Source: OECD Tax and Benefit Model, 2018 15 Roantree et. al. (2019) Housing Assistance Payment: Potential impacts on financial incentives to work. https://www.esri.ie/system/files/publications/wp610.pdf 7

Childcare Figure 3 shows that childcare costs are a significant contributor to METR for households with children compared to the European average. A lack of affordable childcare is continually raised as a key pressure point for low income households SVP assists and the delay in the rollout of the Affordable Childcare Scheme is of concern. We acknowledge that this implementation issue is outside the remit of the LPC; however, it is necessary to consider how such services interact with wages and contribute to the adequacy of a household's income. The VPSJ conducted an analysis of the impact of the ACS on the adequacy of household's income. This analysis was very illustrative of the complex way wages interact with secondary benefits and the impact of services on income adequacy. For example, for a dual earner household, the ACS would not reduce expenditure need to a degree where the NMW would provide an adequate income but does for other family types depending on the family composition, working hours, housing support and entitlement to in-work benefits. 16 Difficulties and traps also arise from the fact that eligibility for childcare subsidies is contingent on entitlement to other supports. So for example, a household who is just over the threshold for the Working Family Payment by 20 per week can be compounded by ineligibility for the higher bands of childcare subvention. 17 It is expected that the new IT system will address these issues. Nevertheless, given such complexity, we recommend the LPC engage with the DCYA to examine how the level of subsidy interacts with the NMW and the degree to which it provides an adequate income for different family types. Figure 3: Effective tax rate on entering minimum wage employment including childcare fees 140 120 100 80 60 40 20 0 92 12 Single person with 2 children 92 25 Couple with 2 children 50 22 Single person with 2 children Ireland EU 28 50 33 Couple with 2 children Contribution of childcare fees Contribution of benefits Contribution of taxes Source: OECD Tax and Benefit Model, 2018 16 VPSJ (2017) MESL 2017 update report. https://www.budgeting.ie/download/pdf/mesl_2017_update_report.pdf 17 VPSJ (2018) MESL 2018 update report. https://www.budgeting.ie/publications/mesl-2018/ 8

In-work income supports One important factor that should be considered by the LPC is the interaction between entitlements to social protection supports and the NMW. For example, linking earning disregards to the NMW would ensure the value of the earnings disregard in terms of hours worked is maintained. Table 1 shows that in 2011 the disregard for the One Parent Family Payment equated to 16.9 hours of NMW employment. In 2019 the 150 disregard equates to 15.3 hours of NMW employment. Therefore to restore the value of the disregard in terms of hours of NMW employment, an earnings disregard of 165.62 would be required (based on the current NMW rate). Table 1: Value of earning disregard in terms for hours worked for lone parents Earnings Disregard National Minimum Wage Hours of NMW Disregarded 2011 2012 2013 2014 2015 2016 2017 2018 2019 146.50 130.00 110.00 90.00 60.00 90.00 110.00 130.00 150 8.65 8.65 8.65 8.65 8.65 9.15 9.25 9.55 9.80 16.9 15.0 12.7 10.4 6.9 9.8 10.8 13.6 15.3 Changes in the NMW can also affect entitlements to the Working Family Payment. For example, in Budget 2019 there was a 30c increase in the NMW, but the thresholds for the WFP remained the same. This means a family with two children where one parent is working 39 hours on the NMW will see an increase in their net income from employment of 7 per week (accounting for NMW & tax changes), but after their WFP payment is adjusted, the overall increase in total income is just 2.80 per week. 18 Similarly, an increase in the NMW may mean a parent with lose eligibility for other means-tested payments such as the Back to School Clothing and Footwear Allowance (BSCFA). It is essential that changes in earning disregards, in-work income supports and any other means tested benefits reflect changes in the National Minimum wage and vice-versa. In their decision regarding the NMW, SVP recommends that the LPC publish an analysis of the impact of changes to the NMW on the value of earning disregards, thresholds for the Working Family Payment, Back to School Clothing and Footwear Allowance and the Medical Card. Income tax The Vincentian Partnership for Social Justice (VPSJ) Budget 2019 analysis showed for a single person earning the minimum wage, working full-time (37.5 hours), gross weekly salary will increase by 9.38 in 2019 due to the NMW change. 19 However, the additional PAYE, PRSI and USC liable on this salary increase reduces the net gain to 5.34 per week. SVP recommends the LPC examine how tax credits or USC could be adjusted to ensure increases in the NMW are maximised (e.g. increase the personal tax credit, adjustment to the entry level USC bands). 18 2019 : 369 (net income from NMW employment) + 151.8 (WFP) = 520.8 2018: 362 (net income from NMW employment) + 156 (WFP) = 518 19 VPSJ (2017) Budget 2018: MESL Impact Briefing https://www.budgeting.ie/publications/budget-2018/ 9

Setting the Living Wage as a Target We welcome the LPC commitment to tackle exclusion, marginalisation and poverty by examining the adequacy of the NMW and note the statement that decisions in relation to changes to the National Minimum Wage must be made on a clear evidence base. SVP are recommending the VPSJ Minimum Essential Standard of Living is used as a benchmark and that a Living wage should be set as a target for the Low Pay Commission. In 2018, the Living Wage was calculated as 11.90, 18% higher than the NMW. 20 The experience in the UK shows that when employers transitioned to paying staff at least the Living Wage they experienced significantly lower rates of staff turnover, reputational benefits, reduction in sick leave, better motivated staff and an increase in productivity. One study found that absenteeism decreased by 25% and two-thirds of employers stated that staff turnover reduced. 21 Setting the Living Wage as a target is critical. However, SVP recognises that the NMW rates can t address in-work poverty and income inadequacy alone, particularly for households with children. Public services and supports should work in conjunction with the NMW, to ensure an adequate income from work which enables individuals to afford a socially acceptable standard of living. 20 https://www.livingwage.ie/ 21 Living Wage: A Guide for Employers (UK) https://www.livingwage.org.uk/sites/default/files/living%20wage%20implementation%20guide_0.pdf 10

Appendix: Case studies of working families employed on the NMW RUTH, TWO PARENT FAMILY, TWO CHILDREN (PRIMARY SCHOOL AND SECONDARY SCHOOL AGE), 1X DISABILITY ALLOWANCE AND 1X EMPLOYED 22 Ruth's husband suffers with poor mental health and receives Disability Allowance. Ruth is employed part-time, at twenty-five hours per week. She describes her children as "good kids, no real trouble with them." She says that at times it can be hard raising children when their father cannot help. Ruth's son attends a psychologist because he has a behavioural disorder. The psychologist is "a very good listener" and Ruth talks to him when she feels "desperate." When Ruth s mother died, nineteen years ago, Ruth bought her father s share of the family home. Ruth is struggling with mortgage repayments and has been in court because of arrears, but believes she has secured her home. The bank s court expenses and her arrears have been added to her mortgage. Ruth s family are supportive despite the fact that they are all just getting by themselves but they do their best. Ruth often has to borrow from her extended family, she borrows almost every week and pays back the following week one week borrow, the next week pay back. Her sister-in-law gives her children s clothing to Ruth. On Sundays, Ruth s family visit her for a proper Sunday lunch. Ruth wishes she could afford to have a Sunday lunch for her family. Her sister-in-law will also look after Ruth s seven year old, on the rare occasion that it is necessary. She also has some very good friends. Work is a great outlet and support for Ruth, and she would go crazy without work and the people [she] knows there. Ruth doesn t like always needing to get help. Ruth says: I am very glad to be able to put food on the table and have a roof over our heads. She wishes she could buy meat other than mince and chicken, her weekly dinner menu is limited to three possibilities. Ruth buys very little clothing, they cannot do house repairs, and they don t go on holidays. In terms of savings Ruth has none no money. The school that her youngest child attends is great and there are no demands for money. On the other hand, her eldest child s secondary school is always asking for money. She prioritises educational spending and she has aspirations for her children, she wants them to enjoy a better quality of life then they currently have. It costs ten euro per month for Ruth s husband s medication (prescription charges). Their children are healthy. Ruth has a pain in her shoulder from lifting in the warehouse where she works, however she is afraid to go to the doctor in case there is more money involved. 62 Ruth s older son has a gym membership. Her younger child has no children activities at present. She hopes to get money to send him to the taekwondo club. This is important to Ruth because her son usually just wants to stay at home but he wants to go to this club. She adds: he s sick of going to 22 These cases studies are extracted from the Vincentian Partnership for Social Justice (2018) Stories of Struggle: Experience of living below the Minimum Essential Standard of Living. https://www.svp.ie/socialjustice/publications-submissions/publications/stories-of-struggle-2018.aspx 11

the park. Ruth can just afford to go for a walk or visit a friend for a cup of tea or visit her motherin-law for a natter. For her children s birthdays, she is saving to give her eldest son money to go to the cinema with a friend. For her youngest child, the school organise a birthday party and Ruth sends some things for the party. She will also buy a small cake from Aldi for the home celebration. At Christmas, Ruth gets money from her family and friends to get gifts for her children. Ruth gets very depressed at times and feels there is a dark cloud overhead. She says she has to stop being depressed and finds walking helpful. She can never pay for a treat or nice clothes for her children and she feels guilty. She would like for them all to be able to go out together, as a family. She adds: I can begin to plan when I m fifty-nine and the mortgage is paid. STEPHEN, TWO PARENT FAMILY, FOUR CHILDREN (1X PRE-SCHOOL AGE, 2X PRIMARY SCHOOL, 1X SECONDARY SCHOOL), 1X EMPLOYED Stephen is a qualified cabinet maker but he was made redundant in the recession. Where he lives was badly hit, there are no carpenter jobs available. He adds: I keep trying, I could get work in Dublin but my wife and four children are [here] and I would lose money on travel and accommodation in Dublin, if I went to work there. Stephen is now working in an administrative role thirty-nine hours a week and is paid the National Minimum Wage. His wife stays at home and takes care of their children. Stephen is always juggling this and that, the mortgage is a weight around our necks. They do without; struggle until next week s wages arrive and ensure the basics are available, food and heat. Stephen says you re very lucky if you have fifty euro left over at the end of the week. There s tension at home knowing the kids can t have what other kids have and Stephen s wife wants to keep the house nice. He says: she can t invite friends in because she s ashamed of our home, it needs decorating and painting but we don t have the money for it. Stephen s family are not in a position to help financially. He says: we rely on ourselves, I do without myself, I don t want to be under obligation, I want the children to learn not to expect others to rescue them. Stephen s wife s family sometimes give them food and clothes. In terms of food Stephen says he will buy cheaper and shops in Aldi. His children like chicken, spaghetti bolognaise, shepherd s pie, pasta, rice and boxty sausages. Stephen did not have problems with clothing when the kids were small but older kids want brands and they are under peer pressure. He adds: my fourteen year old son is a man s size and clothes for him are expensive. Stephen and his wife will only buy clothes for themselves when they have nothing left to wear. Stephen says there is not enough money for personal care for his wife: my wife goes to the hairdresser once a year, she spends very little on make-up, we put the kids first. They have a back boiler to heat their home, it takes coal and it s very good heating and hot water. Stephen struggles to afford heating, he says: I get pieces of wood from around the place; I go looking for wood around. They don t buy oil or gas. Stephen s family have Medical Cards, one child has asthma and another has a skin condition so prescription charges can be high. Stephen has life-insurance as a 12

stipulation of his mortgage and it costs seventeen euro per month. Stephen can do many of his household repairs using the skills he developed as a professional carpenter. They cannot afford to have birthday parties for their children or day-trips for the children. Stephen says: they like to go to the cinema, dancing, parties, we try to make this possible in a fair way; it s not easy. Stephen and his wife never go out together, it never lets up. They don t drink and if there is a family wedding, only one of them attends. He adds: we have no holidays but we go to Bundoran every year for the day with the whole family. This is the highlight of the summer. Stephen says that education costs can be high especially secondary school uniforms, he adds: my son s uniform with the crest cost 250 and shoes are the biggest expense, we get them in Pennys or Dunnes. There s a book lending scheme in the primary school but not in secondary school and they face problems with changes in text books because they changed a few pages. Their children will look for money for school trips, and [they] often have to say no to even five euro. Stephen says: we just don t have it even though we budget carefully; we have to say sorry we can t so often. They are very good kids and we hate that they feel different. Stephen s family are always struggling with registration school expenses, and the children do swimming and its eighty euro for each child up front, so far two of them have had to learn. Stephen has never been behind in mortgage re-payments and although he is always in credit with the bank they would not give him a loan for a newish car. Fortunately, a local mechanic let me have a car for weekly payments. He needs a car to get to his job, and spends 30 per week on diesel. Stephen and his wife start saving for Christmas in September; they have "none" at present "but have some of the redundancy money in the bank." Stephen believes that their "life is under control but we are always under pressure, in case costs get out of hand." Stephen adds: "what if the car breaks down and I can't get to work? We have to keep some money for a rainy day. 13