Joe Walsh
Question:163 Mr. J. Walsh asked the Minister for Social Welfare his views on the implications of the study on child benefit; if he intends to implement its recommendations; and if he will make a statement on the matter. [2153/95]
Written Answers. - Study on Child Benefit.
The Child Benefit Review Committee was set up to put forward proposals for appropriate changes in child benefit which could be considered for the 1995 budget. I have found their report to be very useful in clarifying an approach to child benefit in the context of that budget. As regards the structure of child benefit, the committee's approach was to give particular weight to the alleviation of child poverty and a reduction in disincentives to employment. On that basis, it concluded that the existing structure, with a higher rate for the third and subsequent child, should be retained.
The main recommendation of the committee in relation to 1995 was that child benefit be increased. The committee recognised that, given the many different roles of child benefit, setting the appropriate rate was, to a certain extent, arbitrary. They suggested, however that an increase of £5 in 1995 would represent a balance between a reasonable increase and a realistic approach to funding.
Proposals in the report will be considered by the Government as part of the overall budgetary package and any decisions on them will be announced in the budget.