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Dáil Éireann debate -
Wednesday, 4 Jul 2001

Vol. 540 No. 2

Written Answers. - Social Welfare Benefits.

Gerry Reynolds

Question:

50 Mr. G. Reynolds asked the Minister for Social, Community and Family Affairs if he has plans to introduce paternity leave benefit on a similar basis as some EU countries; and if he will make a statement on the matter. [19743/01]

The possibility of introducing paternity leave, including the question of payment for such leave whether by employers or in the form of a social welfare payment, is currently being examined by the working group which has been established under the Programme for Prosperity and Fairness to review the operation of the Parental Leave Act, 1998. This working group is being chaired by the Department of Justice, Equality and Law Reform and comprises representatives from each of the pillars of social partnership, together with representatives of relevant Government Departments and agencies, including my own Department.

It is expected that this working group will publish its report in the autumn, with a view to having its recommendations considered in a budgetary context.

Paul McGrath

Question:

51 Mr. McGrath asked the Minister for Social, Community and Family Affairs if he plans to rectify the anomaly where child dependant allowances are payable at three different rates; the total number of allowances paid; and if he will give a breakdown of the number in each category who receive dependant allowances. [20193/01]

There are currently three different rates of child dependant allowances payable to social welfare recipients, ranging from £13.20 per week to £17.00 per week. Since the time of the report of the commission on social welfare, which recommended a rationalisation of the rates of child dependant allowances, the number of different rates has been reduced from 36 down to the current three. Further rationalisation would be extremely costly; the cost of paying all child dependant allowances at the highest rate currently paid is estimated to be over £48 million per annum.

The Deputy will be aware that the loss of child dependant allowances by social welfare recipients on taking up employment can act as a disincentive to taking up available work opportunities. The policy direction followed by successive Governments has therefore been to concentrate resources for child income support on child benefit. Unlike child dependant allowances, 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.

Before we came to office, expenditure on child benefit was £397 million annually. Our first three budgets increased this to £575 million – an increase of more than 40%. The increases in the basic rates of child benefit of £25 and £30 per month respectively which were paid in June represent a further full-year investment in the scheme of almost £330 million.
With increases of the same order due in each of the next two years, by the end of 2003, Government investment in the scheme will have increased by an additional £1 billion. This means that we will have moved from a position in 1994 where 70% of child income support for a family claiming social welfare payments was in the form of child dependant allowances to a position in 2003 where child dependant allowances will account for less than 33%.
In the circumstances, I believe that investment in the child benefit scheme is the correct approach and represents the most effective use of the resources available for child income support.
It is estimated that a child dependant allowance will be paid in respect of about 350,000 children in 2001. A breakdown of the number in each category is provided in the following tabular statement. Child benefit is currently paid in respect of over 1 million children.
Child Dependant Allowances (CDAs)

Rate

Full-rate

Half-rate*

£13.20

124,500

101,000

£15.20

133,000

17,000

£17.00

28,700

Total:

286,200

118,000

*Two half rate CDAs may be paid in respect of a child where both of the child's parents are receiving a social welfare payment.

Paul Connaughton

Question:

52 Mr. Connaughton asked the Minister for Social, Community and Family Affairs his views on whether the £100 child benefit payment target in the Programme for Prosperity and Fairness is sufficient to meet the needs of children and their parents; and if he will make a statement on the matter. [19748/01]

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.

Before we came to office, expenditure on child benefit was £397 million annually. Our first three budgets increased this to £575 million – an increase of more than 40%. The increases in the basic rates of child benefit of £25 and £30 per month respectively which were paid in June represent a further full-year investment in the scheme of almost £330 million. Some 532,000 families with over one million children will have benefited directly from the increases.
With increases of the same order due in each of the next two years, Government investment in the scheme will have increased by an additional £1 billion in the period 2001-03. This means that the PPF commitment to move towards child benefit rates of £100 per month for third and subsequent children, will have been substantially exceeded a year ahead of target in 2002.
The child benefit scheme is designed to contribute towards the additional costs faced by those with children. I am confident, that the improvements in child benefit this year and over the next two years, will significantly enhance the level of support for families with children.
The Deputy will also be interested to note that the issue of developing a benchmark for adequacy of child social welfare payments is among the issues currently under examination by the social welfare benchmarking and indexation group established under the terms of the Programme for Prosperity and Fairness.
The group is expected to complete its work by the end of July 2001 and will produce its final report shortly thereafter.
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