Ivor Callely
Question:80 Mr. Callely asked the Minister for Social Welfare the consideration, if any, he has given to regulating the payment of children's allowance to certain income groups; and if he will make a statement on the matter. [6976/96]
Written Answers. - Social Welfare Benefits.
The programme, A Government of Renewal, contains a commitment to work towards a basic income system for children. This issue is currently being examined by the Expert Working Group on the Integration of Tax and Social Welfare. I understand that the group is due to report shortly and I look forward to receiving its proposals on this issue which I am confident will advise on the optimal approach to achieving a basic income system for children.
The strategy which I have adopted pending receipt of the group's report has involved systematic improvements in child benefit. As a universal payment, child benefit is very well targeted to middle and low income families and cannot constitute an unemployment or poverty trap. Over the 1995 and 1996 budgets, we have provided increases in child benefit of 45 per cent for the first two children and 36 per cent in respect of other children. From September next, the monthly payment will amount to £29 for the first two children and to £34 for the third and subsequent children.
Ivor Callely
Question:81 Mr. Callely asked the Minister for Social Welfare the number of persons entitled to claim children's allowance in 1995; the number of such persons who claimed their entitlements; the value of these claims; and if he will make a statement on the matter. [6977/96]
The total number of families who were in receipt of a child benefit payment for at least one child on 31 December 1995 was 491,520. The total number of children in respect of whom child benefit was payable at that time was 1,065,471. Expenditure on child benefit in 1995 is estimated at £301 million and is expected to rise to £375 million in 1996, reflecting a full year of the 35 per cent increase in the rate of child benefit which I introduced with effect from September 1995.
Payment of child benefit is not subject to a means test or to pay related social insurance contribution criteria. Child benefit is normally paid in respect of a qualified child up to 16 years of age.
Where the child continues in full-time education or the child is physically or mentally handicapped, the payment may continue up to their 19th birthday. Information to this effect is included with the child benefit book itself and is included with other communications to recipients, including those who have opted to have their payments lodged directly to a bank, building society or post office savings account, instead of via a child benefit book.
Arrears are paid in cases where people fail to claim on time in respect of eligible children who have reached 16 years of age, provided they have been in receipt of child benefit in respect of that child prior to the child's sixteenth birthday.
Because the scheme is universal and straightforward, it is very widely understood in the community. An analysis of the latest available data suggests that child benefit is paid in respect of more than 99 per cent of eligible children.