Vol. 517 No. 6
327 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he proposes any further increase in child benefit payments in 2000 in order to offset the impact of inflation on the already announced increases; and if he will make a statement on the matter. [10864/00]
While the latest published monthly CSO report on the consumer price index highlights that in the year to February 2000 inflation increased by 4.3%, the Minister for Finance in his budget statement has estimated that the annual average inflation rate for the whole of 2000 will be 3%.
The 2000 budget provides for a full-year investment of almost £106 million in the child benefit scheme. From September of this year, the lower rate of child benefit, payable in respect of the first and second children will be increased by £8 and the higher rate, payable in respect of the third and subsequent children will be increased by £10, bringing the rates up to £42.50 and £56 respectively. This very substantial investment represents projected real increases of 19.6% for the lower rate of child benefit and 18.2% for the higher rate.
The new Programme for Prosperity and Fairness commits the Government to further substantially increasing the rates of child benefit over the period of the programme, with a priority focus on reaching £100 per month for the third and subsequent children.
