Vol. 529 No. 1
471 Mr. Haughey asked the Minister for Finance the taxation and other measures he has taken to encourage the stay at home spouse obtain employment outside the home; if those measures provide for more money in his/her pocket for child care expenses; and if he will make a statement on the matter. [1132/01]
The Deputy will be aware that the overall budget tax measures will enhance the reward from working and leave far more net pay in the taxpayer's pocket. The further widening of the standard rate income tax band will also add to the reward from taking up employment for those not yet in the labour force.
Regarding child care expenses, as I said in my 2001 Budget Statement, the Government's core objective is to provide support which will offer real choice to parents and will benefit all our children. This can be done through child benefit. I announced, therefore, that the child benefit rates for first and second children are being increased by £25 to £67.50 per month and by £30 to £86 per month for third and subsequent children. The new rates will be payable from next June, which is three months earlier than usual. These increases are a first step in a three year process which will see investment in the child benefit payment rise by £1 billion by 2003. The substantially increased level of resources invested in the scheme over the next three years will mean that the PPF commitment to move towards £100 per month for the third and subsequent children will have been implemented by 2003.
In relation to the provision of child care facilities, the Government has already put in place a wide range of measures to increase the supply of child care places in all parts of the country. The national development plan includes £250 million for child care and the Government subsequently allocated a further £40 million for this purpose. To facilitate early action, this spending is being front-loaded through the allocation of £104 million in the Estimates for next year.
