Dáil Éireann Debate, Wednesday - 28 April 2004
207 Mr. Durkan asked the Minister for Social and Family Affairs if she will consider substantially increasing child benefit with a view to assisting parents with high child minding costs; and if she will make a statement on the matter. [12321/04]
View answerChild benefit, CB, delivers a standard rate of payment in respect of all children in a family regardless of income levels or employment status. It supports all children but delivers proportionately more assistance to those on low incomes and with larger families. It does not distort parental choice in respect of labour force participation and contributes towards alleviating child poverty.
Child benefit is not intended primarily to meet child care costs. However, the substantial increases in CB in recent years can make a substantial contribution to meeting those costs. Budget 2004 provided for a €6 per month increase, or 4.8%, in the rate of child benefit payable in respect of each of the first two children and €8 per month, or 5.1%, increase in the rate payable in respect of the third and subsequent children.
Over the period since 1997, the monthly rates of child benefit have increased by €93.51 at the lower rate and €115.78 at the higher rate, increases of 246% and 234% respectively, compared with inflation of 26.9%. This level of increase is unprecedented and delivers on the Government's objective of providing support for children generally while offering real choice to all parents.
The question of further increases in child benefit will be a matter for consideration in a budgetary context.
