Controversial Reports Finds Thousands Would Be Better Off On Benefits

Thousands of families would be better off on the dole than working, according to a controversial report by a State-funded think tank.

Published by the Economic and Social Research Institute (ESRI), the report concluded that once the costs of transport to work, lunches and other expenses are factored in, it costs parents almost €10,000 a year just to get themselves to work.

The study found that working people incur five times the expense of someone who is unemployed.

The report, which is set to re-ignite the debate about the generosity of the welfare system, found that work-related expenses are so high that four out of 10 working families would be better off on welfare.

It costs a worker, with no children, €7,000 a year to cover expenses like lunches and commuting. And this figure rises to almost €10,000 for those with one child under five.

Co-author of the report, Richard Tol, said the figures blew away arguments made by Social Protection Minister Joan Burton that the majority of people were better off in work.

"Joan Burton and her department work under the assumption that, for the vast majority of people, it is better to work; you come out with a higher net income. That is not true, if you believe our numbers."

The report concludes: "A comparison of take-home pay plus extra expenditures shows that 15pc of people without children, and 44pc of people with children, are better off not working."

(H/GK)