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Dáil Éireann debate -
Tuesday, 11 Apr 2000

Vol. 517 No. 6

Written Answers. - Social Welfare Benefits.

Paul McGrath

Question:

95 Mr. McGrath asked the Minister for Social, Community and Family Affairs the real percentage increase in child benefit since his appointment; the way that this percentage increase compares to that in the previous three budgets; and if he will make a statement on the matter. [10551/00]

The information sought by the Deputy is provided in the following statement.

The lower and higher child benefit rates have been increased nominally over the last six budgets by 113% and 124% respectively to £42.50 and £56. These amount to real increases of 88% and 98% when account is taken of the increase in the C.P.I. over this period.
By 1997, after the first three budgets in this period, the cumulative increases were nominally 50% and 56% respectively or 42% and 48% in real terms.
The view that child benefit represents a key instrument for tackling child poverty and targeting child income support is widely acknowledged. Child benefit is a universal payment, which is not taxable and is not assessed as means for other secondary benefits, and does not con tribute therefore to disincentives to taking up employment or to improving wages.
The value placed by successive Governments on child benefit is reflected in the level of resources invested in the scheme over the period shown. Most notably, the 2000 budget provides for a full year investment of almost £106 million, bringing the total investment in the scheme up to some £575 million.
It is my intention that the value of the child benefit scheme will continue to be exploited to the greatest possible extent. In this regard, the Deputy will be aware that the new Programme for Prosperity and Fairness includes a commitment that child benefit will be substantially increased over the period of the programme, with a priority focus towards £100 per month for the third and subsequent children.

Year

Lower Child Benefit RateCumulative since 1994

Rate£ p.m.

Nominal% Increase

Real% Increase

Higher Child Benefit RateCumulative since 1994

Rate£ p.m.

Nominal% Increase

Real% Increase

1994

20.00

25.00

1995

27.00

35%

32%

32.00

28%

25%

1996

29.00

45%

39%

34.00

36%

31%

1997

30.00

50%

42%

39.00

56%

48%

1998

31.50

58%

46%

42.00

68%

55%

1999

34.50

73%

57%

46.00

84%

67%

2000

42.50

113%

88%

56.00

124%

98%

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