Vol. 497 No. 2
47 Mr. Sargent asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the continuing high incidence of child poverty; and the steps, if any, being taken by his Department to provide an appropriate quality of life for all children. [24365/98]
The provision of income support in respect of children plays a crucial role in combating the incidence of child poverty. There is widespread agreement that child benefit is one of the more effective mechanisms for the provision of child income support. It is effective in tackling poverty as it channels resources directly to families most in need and is of particular importance to families on low incomes. As it is universal, not taxable and not 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.
Substantial increases to the monthly rates of payment in recent budgets established the growing importance of child benefit within the overall child income support system, with a particular focus on the needs of larger families. The increases provided for in the 1998 budget were targeted especially at larger families, who are at greater risk of poverty. With effect from September of this year, the rates of child benefit were increased by £1.50 per month for the first two children and by £3 per month for the third and subsequent children. This brought the lower rate up to £31.50 and the higher rate up to £42. A family with four children, for example, will now receive monthly payments of £147 or almost £34 per week. This year's budget also made provision for the introduction of a new payment of 150 per cent of the normal child benefit rate for twins.
In addition, family income supplement plays a significant role in assisting low income families through the payment of a regular weekly supplement to parents on low pay. The scheme is now calculated on a net income basis which will significantly increase the supplements payable under the scheme.
Research has shown repeatedly that unemployment is a key factor in producing poor households, and this is particulary true for households containing children. For this reason, the continuing fall in the level of unemployment, allied with the significant rise in employment, will have a positive impact on the level of poverty among Irish children.
The introduction, under the National Anti-Poverty Strategy, of a system, referred to as poverty proofing, of assessing the poverty implications of significant policy proposals will also ensure that the needs of poor children — and the groups experiencing or at risk of falling into poverty — are addressed at policy design stage.
