Written Answers. - Social Welfare Benefits.
Michael Woods
Question:
13
Dr. Woods
asked the
Minister for Social Welfare
if he will have arrangements made to double the child benefit rate for twins in view of the extra costs involved in rearing twins and the higher rates of child benefit already provided for triplets; the cost of this in a full year; and if he will make a statement on the matter.
[5718/97]
Chris Flood
Question:
214
Mr. Flood
asked the
Minister for Social Welfare
the reason twins aged 12 years since 26 December 1995, who started secondary school in September 1996, do not qualify for the grant for twins; and if he will make a statement on the matter.
[5733/97]
I propose to take Questions Nos. 13 and 214 together. Child benefit is currently payable in respect of all children up to age 16 and continues to be paid in respect of children up to age 19 who are in full-time education or are physically or mentally challenged. Child benefit is payable at double the normal rate for each child where three or more children are born together.
In recognition of the significant additional costs involved for parents of twins, I made provision in the 1996 budget for increasing the grant in respect of the birth of twins from £200 to £500 and for the introduction of a new grant of £500 which is payable on the twins reaching the age of four years and again on reaching the age of 12 years.
While the legislation providing for these improvements was not enacted until the beginning of April 1996, it was nevertheless decided to backdate this measure so as to apply to all twins born and those reaching the ages of four and 12 on or after the 1st January 1996. This ensured that twins who might otherwise have qualified pending the enactment of the Social Welfare Act, 1996, received the grant. Over 1,400 families have benefited from these improvements at an annual cost of almost £700,000.
In line with the recommendations contained in various reports, including the Expert Working Group on Integrating Tax and Social Welfare, the Interim Report of the Commission on the Family and the ESRI Report on Poverty in the 1990s, I have targeted this year's improvements in child income support to benefit low income families and in particular, larger families. This has been achieved by increasing the higher rate of child benefit, payable in respect of third and subsequent children by £5 and in addition, increasing the lower rate of child benefit, payable in respect of the first and second child by £1. When taken together with the increases provided for in the 1995 and 1996 budgets, the new rates of £30 and £39 represent an increase of 50 per cent in the rate payable for the first two children and 56 per cent in the higher rate payable in respect of the third child onwards.
In the context of reducing disincentives to work, priority is being given to FIS as a means of increasing the net return from work to families with children. Accordingly, FIS will be reformed so as to be calculated on a net income basis, rather than on gross wages, as at present. This will significantly increase the supplements payable under the scheme, thereby increasing the rewards from work.
As a first step towards meeting the commitment in Partnership 2000, this year's budget provides that FIS will be calculated on the basis of gross earnings less PRSI contributions and levies, with effect from June. Pension contributions will also be deductible. In addition I have provided for an increase in the income thresholds governing entitlement to FIS by £10 at each point.
These two measures will mean that virtually all current FIS recipients will get an increase of at least £6 in their weekly payment. FIS recipients who pay PRSI — those earning over £80 per week — and the levies — those earning over £197 per week — will receive an extra increase.
My priorities for the immediate future in relation to the development of child income support involves continuing the process of removing any disincentive effects arising under the current arrangements and working towards a basic income for children.
Based on present payment rates, the cost of paying double child benefit in respect of twins is estimated to be £8.5 million in a full year. This cost will increase to £9.1 million, when account is taken of the increased rates of child benefit, which will take effect from September.
