Dáil Éireann debate -
Thursday, 4 Dec 2003

Vol. 576 No. 3

Written Answers. - Departmental Estimates.

Michael Ring

Question:

132 Mr. Ring asked the Minister for Social and Family Affairs the reason her Department's Estimate of the average number of children for child benefit purposes was so wrong, in view of the fact that its calculations were out by 28,000 for 2003; the way in which the Estimate was calculated; if she will provide a breakdown of the number of children born here for each of the past five years; and the number of children who were provided with a monthly child benefit payment. [29539/03]

Minister for Social and Family Affairs (Mary Coughlan)

My Department's original 2003 Estimate for child benefit was €1,623.4 million. This sum provided for monthly payments in respect of an average of 1,028,000 children.

The indications now, as we near the end of the year, are that the original Estimate is likely to be inadequate. The precise amount of the shortfall will not be known until after the close of the year. The figure is estimated at €42.5 million and this is the sum included in the Supplementary Estimate for my Department.

The increase of €42.5 million equates with an upward revision of 28,000 in the expected average number of children. This revision is attributed to a number of factors. In the first instance, claims for child benefit are now being processed more quickly following the introduction of the new service delivery model, SDM, computer system.

This has resulted in earlier payments to recipients and a once-off increase in expenditure in 2003. The increase in expenditure reflects the fact that approximately 20,000 claims received in 2002 were not processed until 2003. Second, the number of children for whom payments are being made had been reducing each year prior to 2002. The reduction in 2000 was 10,000 and in 2001 was 5,000. In 2002, the trend changed to an upward one with an increase of 6,000 children. This reversal of trend is attributed to an increasing birth rate, a reducing outflow of claims, due mainly to a decreasing birth rate during the 1980's, and net inward migration in recent years.

The number of children born in the State in each of the past five years is as follows:

Year	Births
1998	53,551
1999	53,354
2000	54,239
2001	57,882
2002	60,521

A monthly child benefit payment would have been payable in respect of all of these children.