Billy Timmins
Question:131 Mr. Timmins asked the Minister for Social and Family Affairs if the child dependant allowance will be amended to just one rate application to all children; and her plans to address this anomaly. [4020/04]
View answerWednesday, 11 February 2004
Questions (75)
Written answers
There are currently three different 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 different rates has been reduced from 36 to the current three. To standardise the three main rates of allowances at the highest rate of €21.60 would mean that approximately 234,000 full rate payments and 121,000 half rate payments would be increased at a cost of approximately of €59 million annually. The policy direction followed by successive Governments has been to concentrate resources for child income support on the child benefit scheme rather than 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 in this regard is reflected in the very substantial resources invested in the child benefit scheme since entering office, including the increases announced in budget 2004, which come into effect from April this year. These increases will bring the monthly rate of child benefit to €131.60 in respect of each of the first two children and €165.30 for third and subsequent children.
In the partnership agreement, Sustaining Progress, the importance of child income support arrangements, including child dependant allowances, is recognised with a commitment to examine the effectiveness of current arrangements in ending child poverty. The question of further rationalisation of child dependant allowance will be a matter for consideration in a budgetary context and in the context of priorities generally.