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Dáil Éireann debate -
Wednesday, 17 Nov 1999

Vol. 511 No. 1

Written Answers. - Social Welfare Benefits.

Róisín Shortall

Question:

68 Ms Shortall asked the Minister for Social, Community and Family Affairs the timetable, if any, he has set for the achievement of targets in regard to his recent statement that he would like to see child benefit increased to £100 per month and the old age pension to £150 per week; and if he will make a statement on the matter. [23628/99]

The value of the child benefit scheme as a vehicle for the delivery of child income support is recognised on all sides of the House.

It is reflected also in the substantial investment the Government makes in the scheme, at a full year cost of around £475 million per annum. The last budget 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.

Child benefit 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 As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits, such as differential rents, medical cards, etc., it does not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.

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.
In our review of the Action Programme for the Millennium, the Government has firmly committed to the early achievement of an old age (contributory) pension rate of £100 per week and, furthermore, to extend this £100 commitment to all social welfare pensioners by 2002. We have also committed to increasing all social welfare pensions in line with increases in average earnings over the life time of the Government.
The Pensions Board, in its report entitled Securing Retirement Income, recommended that social welfare pensions should be increased in line with prices at a minimum, and, ideally, in line with earnings, and that it would be desirable to aim, over a five to ten year period, to increase social welfare pensions to 34% of average industrial earnings.
The level of any further increase in child benefit and in the rate of payments for old age pensioners are matters which are currently being considered by Government in the context of the forthcoming budget.
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