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Dáil Éireann debate -
Wednesday, 4 Dec 2002

Vol. 558 No. 5

Other Questions. - Child Support.

Ciarán Cuffe

Question:

68 Mr. Cuffe asked the Minister for Social and Family Affairs if consideration has been given to restructuring the current three rates of child dependant allowances on an age basis. [24758/02]

There are three weekly rates of child dependant allowances payable to social welfare recipients, €16.80, €19.30 and €21.60. 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 rates has been reduced from 36 to the current three.

The policy direction followed by successive Governments has been to concentrate resources for child income support on the child benefit scheme rather than the child dependant allowances, as the loss of child dependant allowances by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities. Child benefit is neutral vis-à-vis the employment status of the parents and consequently does not contribute to such potential poverty traps.

The Government's commitment to this policy is reflected in the substantial resources we have invested in the child benefit scheme. Over our first three budgets annual expenditure on child benefit increased to €730.1 million, a rise of more than 40% above the levels in 1996. The subsequent payment in June 2001 of the historic increases in child benefit rates followed by increases of the same order from April 2002 meant that total Government investment in the scheme has risen to some €1.556 billion.

As a direct consequence of this policy, we 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 where child dependant allowance now accounts for approximately 35%.

The vastly improved child benefit rates are paid for children of all ages. This provides a major support for parents on a consistent basis regardless of employment status or income levels. In view of this, the substantial investment in the child benefit scheme, which the Government has made in recent years, has been of major benefit to families and is a most effective use of the resources available for child income support.

The Minister's preference is for the rationalisation of child dependant allowances, if possible. Given that she has said in the House this will probably not be possible due to budgetary considerations, as a short-term measure the reorganisation of child dependant allowances on an age basis might be a good interim step as the current rates are arbitrary and do not recognise the circumstances in which some families find themselves. The Minister should particularly address the case of parents of multiple birth children.

I gave my answer in the context of age difference as specified in the question. It may make sense in one way, but children are expensive from the day they are born and the expenses seem to increase regardless of their ages. In the context of age, it would be hard to quantify how the CDAs could be changed.

Would the Minister say they are equally expensive?

It all depends on how old the children are, as the Deputy knows. There is a premise that younger children are more expensive than older children, but I would not quite agree. It is the policy of the Government to give support through child benefit, which has had a real effect on poverty and addresses the issue of child poverty in particular. Under the CDAs there is a differential between the long-term and the short-term. It can—

There is not.

There is. The amount under the heading of unemployment benefit-unemployment assistance is €21.60; under SWA, €16.80; and one parent families, €19.30. There are differences in the schemes available. I am not in a position to change CDAs. I have looked at different permutations, and, in the context of the budget, have looked more favourably towards the support of the child benefit scheme which better targets the elimination of child poverty.

The Minister has said all children are equal. Why then are there three rates? Over one year a family on the lowest rate is €250 worse off, which makes a big difference to those on social welfare. The Minister, as a mother, knows the Constitution recognises that all children are equal. I call on the Government to ensure all child support payments are paid at the higher rate in order that every child in the State is treated equally. If it is not done in the budget today, I hope it will be done in the Finance Bill. I ask the Minister, as a parent, whether she thinks the current position is right.

As the Deputy will appreciate and as the Leas-Cheann Comhairle will advise me, I cannot pre-empt anything the Minister for Finance will announce in the context of schemes.

She could tell us.

She could make a guess.

We can guess if we like, but we will have to wait until the Minister stands up and speaks.

He will not change this one.

In the context of dealing with child poverty issues and child care, the child benefit scheme is a most appropriate scheme and the one that creates greater universality and equity. It is also more realistic in the context of assisting people on social welfare to move into employment as the loss of the child dependant allowances can often act as a disincentive to work, whereas child benefit is universally available.

While that may have been the case 15 years ago, it is not true now.

I disagree with the Minister that the loss of child dependant allowance acts as a disincentive and agree with Deputy Paul McGrath that it may have been the case a number of years ago. I point out to the Minister – Deputy McGrath will support me on this – that one of the consistent sources of complaints—

An Leas-Cheann Comhairle

We have to move to the next question.

We have a limited time. One of the most consistent sources of complaints in this area are widows and widowers who feel very aggrieved at the failure to increase child dependant allowance.

An Leas-Cheann Comhairle

Does the Deputy have a question?

It appears it will be another blue day for this group. Is that not correct?

Did the Minister actually read the report of the National Economic and Social Council published yesterday, which has a special section about child dependant allowances that is totally at variance with her comments on them.

Unlike the Deputy, I did not have sufficient time to read the NESC report. However, I am sure someone in the Department will read it on my behalf and advise me accordingly. In the context of—

An Leas-Cheann Comhairle

We move to question No. 69.

I am not being given sufficient time to answer the questions.

An Leas-Cheann Comhairle

We must be fair as Deputies are present who are waiting for their questions to be answered.

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