Seán Ryan
Ceist:9 Mr. Ryan asked the Minister for Social Welfare the proportion of his Department's allocation spent on child-related expenditure in each year from 1980 to 1989 inclusive; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Child Benefit.
Brian O'Shea
Ceist:32 Mr. O'Shea asked the Minister for Social Welfare if he will commission an independent research survey into the uses for which child benefit payments are employed by families, to determine the extent to which families depend on child benefit as part of their normal income; and if he will make a statement on the matter.
Liam Kavanagh
Ceist:56 Mr. Kavanagh asked the Minister for Social Welfare the number of families with (a) one child (b) two children (c) three children (d) four children and (e) five children or more, in receipt of child benefit at the end of 1989; and if he will make a statement on the matter.
Dick Spring
Ceist:59 Mr. Spring asked the Minister for Social Welfare the estimated cost in a full year to the Exchequer of increasing child benefit by 25 per cent and of paying an extra month's benefit in September, to assist many families who suffer hardship of enormous additional child-related expenditure; and if he will make a statement on the matter.
I propose to take Questions Nos. 9, 32, 56 and 59 together.
Child related expenditure includes mainly spending on child benefit, child dependant increases and family income supplement. Table A accompanying this reply, which I will make available to Deputies, given time series data on expenditure on child benefit and family income supplement since 1980. The decline in expenditure on child benefit indicated in this table is due to the decline in the number of children in recent years. Statistics are not kept in such a way as would allow similar data to be compiled for child dependant allowance expenditure. However, I can inform Deputies that expenditure on this area is estimated at £22 million this year. Data on the family size of child benefit recipients are given in Table B accompanying this reply which I will also make available to Deputies.
The estimated full year cost of increasing child benefit by 25 per cent and of paying an extra month's benefit, at present rates, would be some £50 million and £17 million respectively. I am very much aware of the financial needs of families with children and I have made significant progress in recent years in increasing the level of social welfare payment to such families.
Following on the achievements of last years' budget, improvements costing £216 million in a full year have been made in this year's budget. These include an increase in the minimum child dependant payment from £10 to £11, the reduction in the number and range of child dependant payments, the payment of child dependant increases until age 20 to recipients of long-term payments where the child continues in full-time education, a 5 per cent increase in the rate of child benefit and the introduction of a clothing allowance for families on social welfare. The tax exemption limits for low income families have been increased and a child related allowance of £300 per child has been included. Improvements costing £1 million are being made to the family income supplement scheme. Deputies will recall that one of the main improvements last year was the introduction of widower's and deserted husband's assistance scheme for men with children.
The focus of recent budgets has been very much on the family, and I categorically refute any suggestion that this is not the case. The following examples of increases show this to be true from this year's budget alone. A couple with two children on long term UA will receive £105 per week, an increase of £8, while a couple with four children will receive an increase of £10 bringing their payment to £127. A couple with four children on short-term UA or supplementary welfare allowance will receive £120 per week, which is an increase of £11.10, while a couple with six children will get an increase of £13.10, and a total payment of £142. A lone parent under 66 with three children on an assistance payment will receive an additional £5.20 per week, giving a total payment of £93.50. A widow or deserted wife on a contributory payment with four children will receive a payment of £116 which is an increase of £5.10 per week.
Since June 1987 we have increased the payments to a long-term unemployment assistance family with five children from £104.85 to £138. The report of the Economic and Social Research Institute on Poverty, Income and Welfare in Ireland which was published in October 1989 contained much useful information in relation to the situation of families with children. Arising from their report the Combat Poverty Agency have commissioned further work on this area which will be completed shortly. These reports and the agency's conclusions in this area will be considered by my Department, and I will consider the need for further analyses in the light of these reports.
I would like to assure the House that the Government will, as resources permit, continue to improve the position of families and thereby build on our progress to date. Such an approach is in line with our commitments under the Programme for National Recovery which to date we have more than met in the social welfare area.
Table A
Expenditure on Child Benefit 1980 to 1990
|
Year |
Expenditure |
No. of Children |
|
£000 |
||
|
1980 |
75,400 |
1,179,368 |
|
1981 |
99,105 |
1,199,952 |
|
1982 |
152,305 |
1,190,109 |
|
1983 |
165,283 |
1,188,041 |
|
1984 |
172,195 |
1,181,169 |
|
1985 |
171,561 |
1,187,465 |
|
1986 |
205,453 |
1,177,087 |
|
1987 |
215,051 |
1,163,317 |
|
1988 |
210,978 |
1,143,183 |
|
1989* |
207,800 |
1,122,703 |
*Provisional.
Expenditure on Family Income Supplement 1984 to 1989
|
Year |
Expenditure |
|
£000 |
|
|
1984 |
63 |
|
1985 |
2,211 |
|
1986 |
3,020 |
|
1987 |
4,373 |
|
1988 |
5,022 |
|
1989* |
6,350 |
Scheme commenced in September 1984.
*Provisional.
Table B
Number of Families Receiving Child Benefit at December 1989
|
No. of Children in family |
Number of Families |
|
1 |
143,965 |
|
2 |
144,268 |
|
3 |
98,795 |
|
4 |
51,372 |
|
5+ |
33,437 |
|
Total |
471,837 |
I thank the Minister for his detailed reply and the statistics he gave. Does the Minister not agree with us and agencies such as the Combat Poverty Agency that child care is of particular concern? Many outside agencies have made submissions to the Minister on this issue. Does the Minister not agree that the cost of maintaining a child is much higher than that provided in any of the social welfare schemes, up to £19 per week, for a four year old child and rising to £28 per week for a child over four years? The best the Minister can do is give £11 per week. Child benefit in the budget was increased by 19p per week.
Brevity, please.
We ask the Minister to look at child benefit again as——
I think the Deputy has made his point.
——60 per cent of the children of this country are living in poverty. We must address this problem.
I must dissuade the Deputy from making a speech.
I would ask the Deputy to use more up-to-date statistics. The ones he is using are for the end of 1986 and the beginning of 1987. Things have changed a lot since then, as the Deputy is aware. The Commission on Social Welfare recommended the introduction of an allowance of at least £10 per child. We achieved this figure last year. Instead of granting the usual percentage increase we managed to increase the figure by £1. Even though things have not been easy in recent years we have made much progress. I am very conscious of the need to do something. One report indicated that it costs about £11.09 per week to adequately feed a child. I appreciate that other costs have to be taken into account but we are making a substantial contribution and have improved the position. We must maintain a balance between the needs of those on social welfare and those at work. I mentioned in relation to the family income supplement that we will be taking some further steps. I hope to make improvements at the lower end in the light of the difficulties which have arisen.