Róisín Shortall
Question:81 Ms Shortall asked the Minister for Social, Community and Family Affairs if he has given further consideration to a parental care payment in addition to child benefit. [10538/00]
Written Answers. - Social Welfare Benefits.
I had a meeting last week with a delegation from the "Childcare 2000" cam paign. At that meeting, the delegation set out their proposal for payment of a parent's childcare payment (PCP) to parents. This would be paid to parents, whether in paid work or caring for children in the home, at the rate of £20 per child per week if the child is aged 0 to 5, and £10 per child per week if the child is aged 6 to 14. The group also propose that the payment would be taxable.
It is estimated that such a payment would cost some £569 million annually, in gross terms. If it were taxed, the net cost would be in the region of £455 million.
Apart from the cost, I would also be concerned at the drop in income arising at ages five and 14. While I accept that certain costs such as child care costs, fall as children get older, other costs, like food, clothing and education expense, increase as the child gets older. I would be particularly concerned at the effect on larger low income families of a drop in child income support as the children get older.
Deputies will be aware that in the recent Social Welfare Act I increased child benefit substantially, by £8 per month in respect of the lower rate and £10 per month on the higher rate. The full year cost of this is £106 million in full year terms. Under the Programme for Prosperity and Fairness, I am committed to substantially increasing child benefit over the period of the programme, with a priority focus towards £100 per month for the third and subsequent children.
The programme also provides that, following a completion process with the social partners, the Government will adopt a strategy to support parents in meeting their child care needs. I would expect the proposal for a parents child care payment to be addressed in the context of that process.