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Dáil Éireann debate -
Thursday, 26 Jan 1989

Vol. 386 No. 2

Ceisteanna—Questions. Oral Answers. - Social Welfare Benefits.

2.

asked the Minister for Social Welfare if he will indicate the number of different rates of payment under the social welfare system in respect of children.

Currently there are 20 rates of child dependant increases of social welfare payments. This number will be reduced to 12 from next July under the measures announced in the budget. This means that in the space of a year the number of child dependant rates has been reduced from 36 to 12 which is a very significant achievement.

In welcoming the changes made in the budget, which were announced yesterday, is it the Minister's ambition to have one rate in respect of all child dependants?

As the Deputy will be aware, in furthering that ambition I introduced a minimum of £10 in the current Social Welfare Bill. We are averaging upwards all the time and that is where the cost comes in. The difficulty is that in the report of the commission the suggestion was that the sum should be brought downwards. I would not particularly like to do that because it would reduce what people are getting at present, particularly widows. Consequently, what I have settled for is averaging up as far as I can go and I would hope to go further in due course. There has been a great difference between the rates.

What is being done this time will have great effect on unemployment assistance and basic supplementary welfare because last year the rates were £9.50 for the first and second child and £8 for the third and subsequent child; for short duration unemployment assistance the rate was £8 and for long duration unemployment assistance it was £8.40 — there was a big gap to be closed — and for those in receipt of a non-contributory old age pension the rate was £8.70. As can be seen, we have achieved a great deal in getting so many rates increased to £10 and ensuring that everybody got an increase.

If I had freezed the upper rates, which would have been more in line with the commission's suggestion, it would have been quicker and easier to average the rates in terms of money. But I did not do that. I kept the other rates going in line with the inflation protection at 3 per cent and at the same time brought the others up. That is what Deputies wished me to do. We will try to make further progress in due course. This very big change of reducing the number of rates from 36 to 12 is the outcome of this budget.

Will the Minister consider, in the context of any changes he is bringing forward in the Social Welfare Bill to be published later, one rate for children under 12 years and a second and higher rate for child dependants over that age?

As the Deputy is probably aware, the commission would have recommended a differential between younger and older children. It is a question of priorities. Obviously, that is an important area to be tackled at a future date. It is very important to the family.

I will keep the Deputy's suggestions in mind.

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