I propose to take Questions Nos. 127, 130, 132 and 139 together.
Since 1994, successive Governments have followed the policy of holding the rate of qualified child increases constant while concentrating additional resources for child income support on the child benefit scheme. Child benefit is neutral vis-à-vis the employment status of the child's parents and does not contribute to poverty traps, whereas the loss of qualified child increases by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities.
As a universal payment, which is not taxable and is not assessed as means for other secondary benefits, child benefit can be more effective than qualified child increases as a child income support mechanism when account is taken of incentive issues.
The Government have invested substantial resources in the child benefit scheme since entering office. Since 1997, expenditure on child benefit has increased from €505.8 million to an estimated €2.05 billion in 2006.
The broad approach over the last ten years in relation to child income support policy was recently commended by the NESC. However the NESC has also raised the question of a new instrument which would target low income families across the welfare-work divide. In this context, the Council was asked to examine the feasibility of merging the family income supplement scheme and child dependant allowance into a second tier child income support. Such a payment would be aimed specifically at targeting child poverty by channelling resources to low-income families without creating significant disincentives to employment.
The final report has not been published to date by NESC. However, while waiting for the structure for the new second tier support to be finalised, a range of other reforms, increased welfare supports and expanded child-centred services are all combining to make significant progress in tackling child poverty. The most recent figures show that at least 100,000 children have been lifted out of deprivation and hardship inside the last decade as a result of targeted measures and supports.
These include, in addition to the substantial increases in each Budget in Child Benefit rates which directly benefit over one million children, increases of from €21 to €282 a week for families on Family Income Supplement which is being claimed by over 21,400 families; the €40 per child increase in the Back to School Clothing and Footwear Allowance which benefits some 85,000 families and the €1,000 a year Early Childcare Supplement which benefits over 390,000 children, a third of whom are the children of lone parents.
The cost of increasing all qualified child increases to the highest rate is estimated to be some €50 million, while the cost of increasing all CDAs to one third of the lowest adult social welfare rate would be some €573 million in a full year.
Any change to existing policy, including qualified child increases, will be considered in a budgetary context and in the context of an overall review of targeted child income supports.