asked the Minister for Social Welfare whether our child support networks are seriously out of line with European standards; and when he will ensure that child benefit is inflation-proofed and levelled to be put more in line with the real cost of raising children.
Written Answers. - Child Support.
92.
Cross-country comparisons of child support are difficult and may not be totally meaningful given the different types of social security systems and financing arrangements in EC countries. In some countries a family supplement is paid, in others payments vary by age of children. Certain countries, for example, the Federal Republic of Germany, Italy and Greece, relate the payments to earnings.
The Government are firmly committed to improving the position of families particularly those on low incomes. The 1989 budget contained very significant increases in respect of children. The measures announced in that budget constitute a major initiative in improving their position and tackling poverty.
Child dependant allowances rates generally were increased by 3 per cent. In addition a minimum rate of £10 per week was introduced. The payments in respect of children for a three child family on short term unemployment assistance were increased by £3 per week, and by £2.20 per week for a person on long-term unemployment assistance. The rate for the third and subsequent children on these payments was increased by 25 per cent for short-term and by 19 per cent for long-term recipients.
In addition to these increases, payment of child dependant increases was extended for long-term recipients including those in receipt of unemployment assistance and invalidity pension, and old age pensioners, children in full-time education up to the age of 19. Child benefit was improved by paying the higher rate of £21.75 in respect of the fifth child from next October, which will mean an increase of £6.70 per month to families of five or more children.
Special measures were also taken for families at work on low pay, which are of special benefit to those with children. These measures involved an increase from £5,000 to £6,000 in the tax exemption limit for married couples together with a new special exemption of £200 in respect of each child. For a married couple with five children on £7,000 a year the net gain is £13 a week.
Further improvements in child support are being considered in a budgetary context.