Jack Wall
Question:82 Mr. Wall asked the Minister for Social, Community and Family Affairs the plans, if any, he has to introduce a basic income for children. [2627/99]
Written Answers - Family Support Services.
The aim of the child income support policy followed by successive Governments in recent years has been to ensure that the supports provided by the State are more neutral vis-à-vis the employment status of the parents.
In this regard, the Deputy will be aware that it is widely accepted that child benefit represents a very effective mechanism for the provision of child income support. It is effective in tackling poverty as it channels resources directly to families with 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 As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits such as differential rents, medical cards, etc., it does not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.
Since coming into office, we have channelled substantial additional resources into the child benefit scheme in pursuance of this policy. The full year costs of the increases provided for in the 1998 budget amount to some £28.4 million while the 1999 budget includes a full year provision of over £40 million.
I should also mention that the family income supplement, FIS, scheme has been enhanced as a means of increasing the net return from work to families with children. From October of last year, in line with a commitment made in the Partnership 2000 agreement, FIS has been reformed so as to be calculated on a net income basis, rather than on gross wages, as had previously been the case. This measure significantly increases the supplements payable under the scheme, thereby increasing the rewards from work.