Mary Flaherty
Ceist:3 Miss Flaherty asked the Minister for Social Welfare his views on the consensus which is emerging from recent studies that children are increasingly at risk of poverty; and whether any new initiatives are required in this area.
Ceisteanna — Questions. Oral Answers. - Poverty Studies.
The studies in question are based in the main on 1986-87 data and do not take into account the many improvements which have been made during the Programme for National Recovery. 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 payments to such families. Social Welfare expenditure on children has been increased to some £440 million in the current year.
Improvements costing some £216 million in a full year were made in this years' budget. Those specifically related to families included an increase in the minimum child dependent payments 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 back to school clothing and footwear allowance for families on social welfare. Over 175,000 children benefited directly from this new scheme at a cost of £5.3 million. The tax exemption limits for low income families introduced last year were increased and a child related allowance of £300 per child was included. Improvements costing £1 million were made to the family income supplement scheme. Deputies will recall that one of the main improvements last year was the introduction of a widowers' and deserted husbands' assistance scheme for men with children. Earlier this week I again built on this scheme with the introduction of the lone parent allowance scheme which covers all lone parents and extends the payments to separated persons for the first time.
The focus of recent budgets has been very much on the family. The following examples of increases show this to be true from this year's budget increases alone: a couple with two children on long term unemployment assistance receives £105 per week, an increase of £8, while a couple with four children received an increase of £10 bringing their payment to £127; a couple with four children on short term unemployment assistance or supplementary welfare allowance receives £120 per week, which is an increase of £11.10, while a couple with six children got an increase of £13.10 giving a total payment of £142; a lone parent under 66 with three children on an assistance payment received an additional £5.20 per week, giving a total payment of £93.50; and a widow or deserted wife on a contributory payment with four children received payment of £116 which was an increase of £5.10 per week.
There have been a number of reports on income distributions in recent years. The recent report on Child Poverty in Ireland by the Combat Poverty Agency is a useful analysis and is currently being considered by my Department in a budgetary context.
I would like to assure the House that the Government are taking initiatives to address the problem of families on low incomes, and that we 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.
Do I take it from the Minister's reply despite the consensus view from the forum of groups he met earlier this week — which gained some media attention — that there was significant evidence of increasing child poverty, he does not accept that and does not see this as an area requiring special attention? With reference to the Brian Nolan report on Child Poverty in Ireland for the Combat Poverty Agency will the Government give serious consideration to the main recommendation that child benefit is the best means of supporting both those on social welfare and those on low incomes?
As I have said, that report is under consideration at present.
Is there a problem?
In its summary, the report said that households with children were more likely to be below any of the poverty lines. The report also stated that there was a sharp rise in the percentage of children in households below the poverty line over the 1973-87 period. I referred to the increases in the last year, but in the last three years there have been very significant increases in payments to children. In any study that is carried out the figures are based on the 1986-87 report and on the data from that time. One has to take that into consideration and the focus which the Government have given, particularly in the last two years, to children and to increasing the payments for children. The Deputy will be aware that child benefit is a universal payment. That is the weakness of child benefit, and consequently the Government have tried to increase the incomes of those on low pay at work through child related tax exemption levels and the family income supplement and for those on social welfare through increases in child dependant allowances. In the current year, the child benefit has been increased by 5 per cent.
Finally, I would like to inform the House that the whole question of the relationships between these different elements is currently under discussion in a budgetary context.