The Deputy's concerns centre on the nature of child income support provided in conjunction with unemployment benefit and long-term unemployment assistance. Child dependant allowances are payable with social welfare payments in respect of children up to the age of 18 years. The allowances continue to be payable where children are in full time education up to the age of 22 years, or up to the end of the academic year after the twenty second birthday, provided that the claimant is in receipt of a long-term social welfare payment. These arrangements do not apply to short-term payments such as unemployment benefit, disability benefit, short-term unemployment assistance and supplementary welfare allowance.
The more favourable treatment of people on long-term payments, including long-term unemployment assistance, is in recognition that families with children on long-term payments face a higher risk of poverty. It is possible, therefore, that a recipient of long-term unemployment assistance with a child or children aged over 18 and in full-time education could have a higher income than a claimant of unemployment benefit in similar circumstances, assuming that neither household had any other sources of income. Given the rationale I have outlined for drawing a distinction between long-term and short-term payment recipients, I do not agree with the Deputy's view that this is an anomalous situation.
He will be aware the thrust of child income support policy in recent years has been to target resources towards providing increases in child benefit, as part of a strategy aimed at ensuring child income support is more neutral vis-à-vis the employment status of the parents. Child benefit remains one of our more effective means of tackling poverty, as it channels resources directly to families most in need. It is of particular importance to families on low incomes.
In this regard, the Deputy will be aware the child benefit scheme will be further enhanced with effect from September. The payment will be increased by £1.50 per child per month for the first two children and by £3.00 per child for the third and subsequent children, thus bringing the lower rate up to £31.50 and the higher rate up to £42. In addition a special supplementary payment in respect of twins will be introduced.