Ireland imposes strict new limits on spending of debtors

€247.04 a month for food.

Ireland is imposing punishing new requirements on people applying for debt write downs, according to the Financial Times:

A single person will be allowed just €247.04 a month for food, €57.31 for heating and €125.97 for “social inclusion and participation”, an expenses category that includes tickets for sporting events and the cinema.

The allowances rise for someone with children, or without access to public transport: according to the Irish Times, each child of primary school age adds another €204.88, while €131 is allowed for a car if there's no other alternative.

The move is the first attempt to quantify acceptable living standards in the country, following the spate of bankruptcies caused by the financial crisis. The guidelines are also expected to be used by banks as they begin restructuring home loans shortly – in Ireland, unlike the UK, mortgages are included in insolvency laws, in an effort to prevent banks from simply foreclosing on debtors.

English insolvency laws are less restrictive than Ireland's, requiring only that the bankrupt person be left enough cash for "reasonable" expenses. As the FT reports, past cases have found that holidays, mobile phones and video rentals are covered by that, but gym memberships, private healthcare, gambling, cigarettes and alcohol aren't.

The imposition of cash limits could be a step up for welfare, if recipients are free to ignore the categories which they're calculated for. One of the worst things about the sort of moralistic reasoning which the British laws embody – and which are mirrored in the arguments for food stamps – is that it prevents people from making their own decisions about what "necessities" are for them. If I'd rather spend £500 on gym memberships than £1000 on a mobile phone bill, then I'm better off if I'm allowed to do that, and so's the state.

Of course, the Irish limits aren't that flexible – and nor are they that high. So for the time being, you're probably better off bankrupt in Britain. Put that on the tourist posters…

Food stamps. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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