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Dáil Éireann debate -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Social Welfare Payments.

Michael Bell

Question:

47 Mr. Bell asked the Minister for Social, Community and Family Affairs if he will report on the Government's progress in implementing the PPF commitment to extend child dependant allowances to all social welfare recipients where the child is under 22 and in full-time education; and if he has had examinations made into the positive impact of raising child dependent allowances in 2001, for the first time since 1996, on child poverty. [24950/00]

It is my intention that child dependant allowances will be extended to all social welfare recipients where the child is under 22 and in full-time education in the lifetime of the Programme for Prosperity and Fairness. The timing of the introduction of measures implementing this commitment over the period, will be determined in a budgetary context, having regard to Government priorities and the available resources.

The policy direction followed by successive Governments since 1994 has been to concentrate resources for child income support on child benefit, rather than increasing child dependant allowances, thus ensuring that the supports provided by the State are more neutralvis-à-vis the employment status of the parent(s).
The employment disincentive problems associated with child dependant allowances were highlighted particularly in the report of the expert group on the integration of tax and social welfare.
Unlike CDAs, child benefit does not contribute to poverty traps or work disincentives, as it is a universal payment which is not subject to a means test. The value of the child benefit scheme as an effective mechanism for the provision of child income support is reflected in the substantial investment which the Government makes in the scheme. The 1999 budget provided for a full-year investment of over £40 million in the scheme, while the 2000 budget provided for a full-year investment of almost £106 million, bringing the total investment in the scheme up to some £575 million.
Since 1994, the combined child benefit/child dependant allowance payment has increased by more than double the rate of inflation. In terms of tackling work disincentives, the shift towards CB has been significant. For instance, in 1994, CB represented 29% of the total child benefit/child dependant allowance payment for a four child family, now it represents 47%.
The policy of concentrating substantial additional resources on child benefit rather than increasing child dependant allowances is of course reflected in the Government's commitment on child benefit under the Programme for Prosperity and Fairness. This places particular emphasis on making progress towards a rate of £100 per month for the third and subsequent children over the lifetime of the programme. The Government is determined to fulfil this commitment.
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