As Senators are aware, there is a separate code of legislation in respect of children's allowances. That explains the necessity for this Bill which, by means of increases in those allowances, provides compensation to families of two or more children for the increase in prices which has resulted from the withdrawal of the food subsidies.
Under the provisions of this Bill, an additional 4/6 per month with effect from the 1st June will be payable for the second and each subsequent child eligible for children's allowances. For May, an additional payment of 2/6 for each such child will be made as an offset to the rise in prices in that month. The first payment of the increased allowances will be made on 2nd July on which date the arrears in respect of May and June will also be paid.
These increases in children's allowances will benefit 225,000 families and will be paid in respect of 586,000 children. Total expenditure on children's allowances as from 2nd July next will be just under £7,000,000 per annum which is a large sum in relation to our total expenditure.