Vol. 515 No. 3
270 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the best estimate of the extent of child poverty; his views on whether one of the best ways to tackle this effectively is through child benefit; and the reason there have not been major improvements in the level of child benefit in recent years. [6244/00]
The latest ESRI figures from the living in Ireland survey show that the percentage of children experiencing consistent poverty fell from 18-23% in 1994 to 15-17% in 1997, while the numbers living in households below the 50% relative income line fell from 29% in 1994 to 24% in 1997. This reduction in child poverty is largely attributable to falling unemployment levels which have enabled many families to release themselves from dependency on social welfare payments and improve their incomes. Under this Government, there have been further record increases in employment. The latest unemployment rate, at January 2000, is 4.9%.
In June 1999, the Government asked the national anti-poverty strategy inter-departmental policy committee to draw up new targets to reflect the changing social and economic environment, including, for example, a child poverty target. This issue is being pursued further in the context of the proposed new social partnership agreement.
The view that child benefit represents a key instrument for tackling child poverty is widely acknowledged and is fully shared by the Government. As a universal payment, which is not taxable and which is not 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 to improving wages. The value of the scheme is reflected in the very substantial investment which the Government has made in the scheme in recent budgets.
The 1999 budget, for instance, provided for a full-year investment of over £40 million in the scheme, while the recent 2000 budget provides for a further full-year investment of almost £106 million. From September of this year, the basic CB monthly rates will have risen to £42.50 in respect of each of the first two children and £56.00 in respect of the third and subsequent children.
