I propose to take Questions Nos. 732 and 733 together.
Child benefit, CB, is paid monthly at present, while child dependant allowance, CDA, increases, in weekly social welfare payments, are paid weekly with the personal payment. There are no plans at present to pay child benefit on a fortnightly or weekly basis. As the payment is made monthly in advance, a change along the lines proposed would lead to a later payment than is currently available. In addition, significant additional administration costs would be involved.
Since 1994, rates of child dependant allowances has been maintained at the same levels. This was done in the context of significant increases in child benefit, thereby concentrating additional resources for child income support on the child benefit scheme. The combined CB-CDA payment has increased by more than double the rate of inflation over that period. In 1994 where 70% of child income support for a family claiming social welfare payments was in the form of child dependant allowances, whereas the current position is that child dependant allowances account for less than 33%.
The approach adopted has had considerable advantages in the overall aim to reduce poverty. Child benefit is neutral vis-à-vis the employment status of the child's parents and does not contribute to poverty traps, whereas the loss of child dependant allowances by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities. As a universal payment, which is not taxable and is not assessed as means for other benefits, child benefit is more effective than child dependant allowance as a child income support mechanism when account is taken of these incentive issues.
In the partnership agreement Sustaining Progress, the importance of child income support arrangements is recognised, and the agreement includes a commitment to examine the current arrangements. This is being advanced in the context of implementing the agreement.