Thomas P. Broughan
Question:37 Mr. Broughan asked the Minister for Social, Community and Family Affairs the plans, if any, he has for the future development of child benefit; and if he will make a statement on the matter. [14580/99]
Written Answers. - Child Support.
Child benefit 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 As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits such as differential rents, medical cards, etc., it does not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.
The value of the child benefit scheme as an effective mechanism for the provision of child income support is reflected in the substantial investment, costing about £475 million per annum including an additional £29 million in the 1998 budget and over £40 million in the 1999 budget. The 1999 investment involves 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.
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.
It would be my intention that this policy direction will continue to be followed in the future.