Written Answers - Child Support.
Liz McManus
Question:
37
Ms McManus
asked the
Minister for Social, Community and Family Affairs
if his attention has been drawn to the recent call by the Combat Poverty Agency to increase child benefit by £10 to £15 per month; his views on the proposal; and if he will make a statement on the matter.
[24610/98]
Bernard J. Durkan
Question:
52
Mr. Durkan
asked the
Minister for Social, Community and Family Affairs
if he will consider a substantial increase in child benefit in the context of the forthcoming budget in order to compensate for increases in the cost of living for families; and if he will make a statement on the matter.
[24638/98]
I propose to take Questions Nos. 37 and 52 together.
The pre-budget submission made by the Combat Poverty Agency, entitled Investing in Children, proposes that the key priority of the forthcoming budget should be the needs of children. The social welfare components of this submission would cost at least £469 million in a full year. In relation to child benefit, the agency proposes that the lower rate of child benefit should be increased by £15; that the higher rate be increased by £10 and that the higher rate payment be extended to the second child, rather than to the third and subsequent children as is currently the case. The cost of implementing these proposals is estimated at £204 million in a full year. The agency also suggests that some of these costs could be offset if child benefit were to be taxed.
In general terms, I share the concerns of the agency in relation to the need to provide for the needs of children. However, the level of increase suggested by the agency is substantial, and the cost of over £200 million is high in the context of the resources which are available and the many other demands on these resources.
I am sure the Deputies will accept that there is widespread agreement that child benefit is one of the more effective mechanisms available for the provision of child income support. It is effective in tackling poverty as it channels resources directly to the main carers of children and is of particular importance to families on low incomes. As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits such as differential rents, medical cards, etc., it does not act as a disincentive to taking up employment or improving wages.
Child income support policy in recent years has therefore sought to ensure that the supports provided by the State are more neutralvis-a -vis the employment status of the parents. That was the approach taken in recent years.
The increases provided for in the 1998 budget were targeted especially at the larger families, who are at greatest risk of poverty. With effect from September 1998, the rates of child benefit were increased by £1.50 for the first two children and by £3.00 for the third and subsequent children, bringing the lower rate up to £31.50 and the higher rate up to £42.00.
Obviously, I am not in a position to reveal to the House what the Government has in mind in relation to the further enhancement of the child benefit scheme. That is a matter which is being considered in the context of the forthcoming budget.
Dick Spring
Question:
38
Mr. Spring
asked the
Minister for Social, Community and Family Affairs
the reason certain categories of social welfare recipients are not entitled to child dependant allowance; and if he will make a statement on the matter.
[24645/98]
Child dependant allowances are payable in respect of all children up to the age of 18 years. Where a claimant is in receipt of a long-term social welfare payment, child dependant allowances are 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 22nd birthday. This applies to long-term payments, such as pensions, only; it does not apply to short-term payments such as disability benefit, unemployment benefit, short-term unemployment assistance and supplementary welfare allowance. The more favourable treatment of people on long-term payments is in recognition of the fact that families with children on long-term payments face a higher risk of poverty.
The Deputy will be aware that 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 that child income support is more neutralvis-a -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.
This policy direction has been continued by this Government through further enhancement of the child benefit scheme. From September of this year, the rates of child benefit were 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 £42.00.
