Dáil Éireann Debate, Tuesday - 20 February 2024
68. Deputy Paul Murphy asked the Minister for Social Protection if a poverty impact assessment was carried out into extending child benefit to 18 year-olds in full-time education or training compared to extending it to 16, 17 and 18 year-olds not in full-time education or training; and if she will make a statement on the matter. [7895/24]
View answerIn Budget 2024, the Government decided to extend the payment of Child Benefit to 18-year-olds who are in full-time education or have a disability. This was one of my key priorities in the Budget.
We had originally provided that the change would take effect from September this year. However, I am very pleased that we are now able to bring this important change in from an earlier date and I have secured Government approval to do that.
It is expected that in the region of 60,000 children will benefit from this measure annually. The additional estimated cost of bringing the commencement date forward to May is €21.6 million.
The impact of the extension of Child Benefit to those aged 18 and in full-time education was included in the Budget distributional impact assessments undertaken and included in the Expenditure Report. That report shows that the Budget 2024 core package of tax and expenditure measures has a progressive impact. It resulted in an increase of just over 2 per cent of 2023 base equivalised household income in equivalised disposable income for all deciles. The benefit to the bottom three deciles is driven by the significant social protection package.
Families on low incomes may be able to avail of a number of social welfare schemes that support children up to age 18, whether or not they are in full time education:
• Increase for a Qualified Child with primary social welfare payments; and
• the Working Family Payment for low-paid employees with children.
These schemes provide targeted assistance that is directly linked to household income and thereby support low-income families with children.
All of the Department’s budget measures are subject to a poverty impact assessment using the SWITCH model developed by the ESRI. The specific idea suggested by the Deputy of extending Child Benefit in respect of 16, 17 or 18 year olds who are not in full-time education or training was not considered as an option as it would run counter to the policy objectives of encouraging young people to remain in education or to take up any of the many training options available to them if they leave school without employment. Where they are in employment payment of Child Benefit would obviously be unnecessary and inappropriate.
I trust this clarifies matters for the Deputy.
