Dáil Éireann debate -
Wednesday, 16 Dec 1998

Vol. 498 No. 5

Written Answers. - Social Welfare Benefits.

Deirdre Clune

Question:

174 Ms Clune asked the Minister for Social, Community and Family Affairs if the increase in child benefit announced in the budget is a response to the recommendations of the task force on child care; and if he will make a statement on the matter. [27925/98]

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

The 1999 budget provides for major increases in child benefit of £3 per month for the first two children and £4 per month for the third and subsequent children, which will bring the rates payable from September 1999 up to £34.50 and £46 respectively.

This substantial investment in child benefit, involving a full-year cost of over £40 million, was influenced primarily by the fact that the Government considers child benefit to be 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 As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits such as differential rents, medical cards, etc., it does not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 neutral vis-à-vis the employment status of the parents and the approach taken in the 1999 budget is consistent with this policy.

The question of childcare raises wider issues than child benefit; these were set out by my colleague, the Minister for Finance, in the course of his Budget Statement. These issues include the need to ensure equity between parents who stay at home to care for children and those who have to meet additional childcare expenses when they go out to work. Similarly, there is a need to ensure that there is a balanced treatment between those who rely on social welfare benefits and those who are in the tax system. There is also a need to ensure that the right balance is struck between measures to help towards the cost of childcare and measures to improve the supply and quality of childcare facilities to meet the growing demands. All of these issues will be the subject of further examination by the Government, which will take into consideration the recommendations of the working group on childcare, established under the Partnership 2000 agreement, when that group's report is finalised.