Skip to main content
Normal View

Social Welfare Benefits.

Dáil Éireann Debate, Wednesday - 15 December 2004

Wednesday, 15 December 2004

Questions (55, 56, 57, 58)

Joan Burton

Question:

53 Ms Burton asked the Minister for Social and Family Affairs if he will consider increases in the rate of the child dependant allowance; the reason this allowance has not been increased in recent years; the objectives of the allowance; and if he will make a statement on the matter. [33444/04]

View answer

Martin Ferris

Question:

64 Mr. Ferris asked the Minister for Social and Family Affairs the reason there has been no increase in the child dependant allowance in 11 years. [33320/04]

View answer

Aengus Ó Snodaigh

Question:

65 Aengus Ó Snodaigh asked the Minister for Social and Family Affairs his policy in relation to the child dependant allowance. [33321/04]

View answer

Seán Crowe

Question:

68 Mr. Crowe asked the Minister for Social and Family Affairs the reason no increase in the child dependant allowance has been provided in budget 2005. [33315/04]

View answer

Written answers

I propose to take Questions Nos. 53, 64, 65 and 68 together.

Since 1994, successive Governments have held the rate of child dependant allowances constant while concentrating resources for child income support on the child benefit scheme.

It is important to recognise that over that period, the combined child benefit-child dependant allowance, CB-CDA, payment has increased by more than double the rate of inflation. Child benefit is neutral vis-à-vis the employment status of the child’s parents and does not contribute to poverty traps. For example, a person receiving an unemployment payment will lose his or her associated CDA on taking up work but retains his or her CB as long as there are qualified children. Similar considerations arise where lone parents exceed the income threshold.

Child benefit supports all children but delivers proportionately more assistance to those on low incomes and with larger families. In these situations, 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 paid to the primary carer, usually the mother, it is not taxable and is not assessed as means for other secondary benefits. It has proven to be of major benefit to families as an effective child income support mechanism when account is taken of these issues.

The Government's commitment to this policy is reflected in the substantial resources invested in the child benefit scheme since entering office, including an additional expenditure of €1.27 billion on child benefit when the current programme of multi-annual increases is complete.

We will then have moved from a position in 1994 where over 70% of child income support for a family claiming social welfare payments was in the form of child dependant allowances, to a position in 2005 where child dependant allowances will account for less than 33%.

As I stated in my budget speech, the point has been put to me to reverse current policy on child income support by increasing the level of child dependant allowances on the grounds that these payments are made only to recipients of social welfare payments and, consequently, are targeted directly at those most at risk of poverty. I concluded, however, that child benefit remains the most appropriate vehicle for tackling child poverty.

With regard to the future direction of child income support, the partnership agreement, Sustaining Progress, recognised the importance of child income support arrangements, with a commitment to examine the effectiveness of current arrangements in tackling child poverty.

In this context, the National and Economic Social Council has been commissioned to examine this area and in specifically, the implications of merging child dependant allowances with family income supplement. This review, which NESC expects to complete in 2005, will inform the development of future policy in this area.

Top
Share