Vol. 510 No. 6
338 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs his views on the Combat Poverty Agency's analysis of the report of the expert working group on child care; his views on whether current levels of child benefit are far too low; and if arrangements are being made to substantially increase these rates. [23489/99]
The analysis undertaken by the Combat Poverty Agency of the report of the expert working group on childcare recommends that child benefit rates should be doubled from the current levels over a three year period. It suggested that increases of this order would make a substantial contribution to the costs of bringing up children irrespective of whether they are cared for primarily by their parents or by child care providers. The agency noted that child benefit does not link provision for childcare with employment status, it does not act as a disincentive to women's participation in the labour market, or create unemployment or poverty traps.
The value of the child benefit scheme as an effective mechanism for the provision of child income support is reflected in the substantial investment which the Government makes in the scheme, at a full year cost of around £475 million per annum. The last budget at a full year cost of over £40 million provided for increases in child benefit of £3 per month for each of the first two children in a family and £4 per month for the third and subsequent children. This brought the monthly rates payable from September 1999 up to £34.50 and £46, respectively.
It is my intention that the potential of the child benefit scheme as an effective mechanism for the delivery of child income support should be exploited to the greatest possible extent.
The level of any further increase in child benefit is a matter for consideration in the context of the forthcoming budget.
