Child dependant allowances are payable in respect of all children up to the age of 18 years. Where a claimant is in receipt of a long-term social welfare payment, child dependant allowances are payable where children in full-time education up to the age of 22 years, or up to the end of the academic year after the 22nd birthday. This is in recognition of the fact that families with children on long-term payments face a higher risk of poverty.
The Deputy will be aware that the thrust of child income support policy in recent years has been to target resources towards providing substantial increases in child benefit, as part of a strategy aimed at ensuring that child income support is more neutral vis-a -vis the employment status of the parents. Child benefit remains one of our most effective means of tackling poverty, as it channels resources directly to families most in need. It is of particular importance to families on low income. As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits such as differential rents, medical cards, etc., it does not act as a disincentive to taking up employment or improving wages.
In the 1998 budget, which was announced yesterday, this policy direction has been contained through further enhancement of the child benefit scheme. Child benefit will be increased by £1.50 per child per month for the first two children and by £3 per child for the third and subsequent children, thus bringing the lower rate up to £31.50 and the higher rate up to £42. In addition a special supplementary payment in respect of twins will be introduced. These measures will take effect from next September.