Dáil Éireann debate -
Wednesday, 4 Mar 1998

Vol. 488 No. 2

Written Answers. - Social Welfare Benefits.

Gay Mitchell

Question:

167 Mr. G. Mitchell asked the Minister for Social, Community and Family Affairs the rates paid for child dependants for each of the years from 1990 to 1998; if he will make a statement on the reason there has been little increase in the amount of payment; and if he will make a statement on the matter. [5964/98]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The information requested by the Deputy is contained in the following table.

There are currently three different rates of child dependant allowance payable to social welfare recipients. It will be seen from the table that there have been no increases in the level of child dependant allowances since 1994. Policy direction in relation to child income support in recent years has focused on targeting resources towards the provision of substantial increases in child benefit. This approach, which centres on making child income support more neutral vis-à-vis the employment status of the parent, has the effect of reducing work disincentives. This issue has been highlighted in various reports, notably the Final Report of the Expert Working Group on Integrating Tax and Social Welfare.

Child benefit has increased substantially from rates of £15.80 per month for the first four children and £22.90 per month for fifth and subsequent children in 1990, to £31.50 for each of the first two children and £42 for each subsequent child from September 1998. Priority has also been given to utilising family income supplement — FIS — as a means of increasing the net return from work to families with children. In line with a commitment made in the Partnership 2000 Agreement, FIS will be reformed to be calculated on a net income basis, rather than on gross wages as at present, with effect from October of this year. This will significantly increase the supplements payable under the scheme, thereby increasing the rewards from work.

Child Dependant Rates

Payment	1990	1991	1992	1993	1994	1995	1996	1997	1998
Retirement/Old Age Contributory Pension	£	£	£	£	£	£	£	£	£
1st and 2nd child	12.80	14.00	14.60	14.90	15.20	15.20	15.20	15.20	15.20
3rd and each other	11.00	12.00	12.50	12.80	15.20	15.20	15.20	15.20	15.20
Widow(er)'s Contributory Pension/Deserted Wife's Benefit	15.00	15.60	16.20	16.50	17.00	17.00	17.00	17.00	17.00
Invalidity Pension
1st and 2nd child	12.50	14.00	14.60	14.90	15.20	15.20	15.20	15.20	15.20
3rd and each other	11.00	12.00	12.50	12.80	15.20	15.20	15.20	15.20	15.20
Disability/Unemployed/Injury Benefit/Old Age (Non-Contributory) Pension/ Blind Pension
1st and 2nd child	11.40	12.00	12.50	12.80	13.20	13.20	13.20	13.20	13.20
3rd and each other	11.00	12.00	12.50	12.80	13.20	13.20	13.20	13.20	13.20
One-Parent Family Payment	13.50	14.00	14.60	14.90	15.20	15.20	15.20	15.20	15.20
Carer's Allowance/Pre-Retirement Allowance/Disability Allowance/Unemployment Assistance Supplementary Welfare Allowance	11.00	12.00	12.50	12.80	13.20	13.20	13.20	13.20	13.20