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.

Photo: Getty Images/Christopher Furlong
Show Hide image

A dozen defeated parliamentary candidates back Caroline Flint for deputy

Supporters of all the leadership candidates have rallied around Caroline Flint's bid to be deputy leader.

Twelve former parliamentary candidates have backed Caroline Flint's bid to become deputy leader in an open letter to the New Statesman. Dubbing the Don Valley MP a "fantastic campaigner", they explain that why despite backing different candidates for the leadership, they "are united in supporting Caroline Flint to be Labour's next deputy leader", who they describe as a "brilliant communicator and creative policy maker". 

Flint welcomed the endorsement, saying: "our candidates know better than most what it takes to win the sort of seats Labour must gain in order to win a general election, so I'm delighted to have their support.". She urged Labour to rebuild "not by lookin to the past, but by learning from the past", saying that "we must rediscover Labour's voice, especially in communities wher we do not have a Labour MP:".

The Flint campaign will hope that the endorsement provides a boost as the campaign enters its final days.

The full letter is below:

There is no route to Downing Street that does not run through the seats we fought for Labour at the General Election.

"We need a new leadership team that can win back Labour's lost voters.

Although we are backing different candidates to be Leader, we are united in supporting Caroline Flint to be Labour's next deputy leader.

Not only is Caroline a fantastic campaigner, who toured the country supporting Labour's candidates, she's also a brilliant communicator and creative policy maker, which is exactly what we need in our next deputy leader.

If Labour is to win the next election, it is vital that we pick a leadership team that doesn't just appeal to Labour Party members, but is capable of winning the General Election. Caroline Flint is our best hope of beating the Tories.

We urge Labour Party members and supporters to unite behind Caroline Flint and begin the process of rebuilding to win in 2020.

Jessica Asato (Norwich North), Will Straw (Rossendale and Darween), Nick Bent (Warrington South), Mike Le Surf (South Basildon and East Thurrock), Tris Osborne (Chatham and Aylesford), Victoria Groulef (Reading West), Jamie Hanley (Pudsey), Kevin McKeever (Northampton South), Joy Squires (Worcester), Paul Clark (Gillingham and Rainham), Patrick Hall (Bedford) and Mary Wimbury (Aberconwy)

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.