Vol. 525 No. 4
28 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will indicate his preferred options in respect of child benefit payments; his views on the need to make a dramatic improvement in such payments in 2001; and if he will make a statement on the matter. [25083/00]
39 Mr. Penrose asked the Minister for Social, Community and Family Affairs if he has had examinations made into the issue of bringing child benefit increases into line with general social welfare changes in 2001; and if he will comment on the cost of this regularisation had it been introduced in 1999 and 2000. [24949/00]
127 Mr. Durkan asked the Minister for Social, Community and Family Affairs the plans he has for the improvement of child benefit payments so as to protect families; and if he will make a statement on the matter. [25366/00]
I propose to take Questions Nos. 28, 39 and 127 together.
The value placed on the child benefit scheme by this Government is reflected in the level of resources invested in the scheme over the past number of years.
The 1999 budget provided for a full year investment of over £40 million, while the most recent budget provides for a full year investment of almost £106 million, bringing total investment in the scheme up to some £575 million annually. Some 491,000 families with a total of 967,000 children benefited from these increases.
It is my intention that the child benefit scheme will continue to be strengthened, as a key instrument in tackling child poverty and targeting resources at those families most in financial need. In particular, because it is a universal payment which is not taxable or assessed as means for other secondary benefits, it does not contribute to disincentives to taking up employment or improving wages.
To this end, the Government has made a commitment to substantially increase the payment over the period of the Programme for Prosperity and Fairness, with a priority focus towards £100 per month for third and subsequent children. From September last, the basic child benefit monthly rates were increased to £42.50 per month in respect of each of the first two children and £56 per month in respect of the third and subsequent children, in line with this commitment.
In relation to the timing of child benefit increases, it should be noted that the effective payment date of the increase coincides with the start of the school year in September and the increased financial burden faced by parents at this time. Moreover, approximately 40% of children are in families who are in receipt of weekly social welfare payments, and will have benefited from the Government's policy of bringing forward increases in weekly social welfare rates.
Next year, general social welfare increases will be paid in April to coincide with the start of the tax year. In 2002, in line with the change of the tax year to the calendar year, the effective payment date of social welfare increases will be brought forward to January – a full 23 weeks earlier than when we came into office.
The issue of the effective date of child benefit increases falls for consideration in a budgetary context.
This cost of bringing the increases in monthly child benefit provided for in the 1999 budget forward by three months from September to June would have amounted to over £10.2 million.
To implement the increases in monthly child benefit provided for in the 2000 budget four months earlier, in May 2000, would have cost in the region of £35.28 million.
