Vol. 451 No. 1
27 Mr. E. Byrne asked the Minister for Social Welfare the proposals, if any, he has to remedy the current situation whereby people receiving weekly child dependent allowances may lose these allowances when taking up low-paid work; and if he will make a statement on the matter. [6209/95]
The increases in social welfare payments provided in respect of dependent children, which result in the loss of child support when a person takes up employment, represent one of the worst poverty and unemployment traps in the existing system.
As the Minister for Social Welfare, one of my fundamental objectives in the 1995 budget was to start the process of addressing this issue in a new and radical manner. The £7 increase in the rate of child benefit with effect from September next represents a substantial improvement in the State's contribution towards the costs of rearing children which cannot be lost as a result of either parent taking up employment.
This, however, is only the first step in meeting the commitment in the Programme for a Government of Renewal to create a form of basic income for children through the introduction of a child benefit supplement. This supplement, which will be introduced during the lifetime of this Government, will be payable to all families whose income is below a certain level regardless of whether that income is from social welfare or employment or a combination of both. This will provide a base-line level of support for children, and those who care for them, and will target resources effectively at those in our society who are at greatest risk of poverty, namely, families with a larger number of children. The new supplement will incoporate both the child dependant allowances paid with social welfare payments and family income supplement which is payable to people in low paid employment.
