Vol. 483 No. 4
23 Ms McManus asked the Minister for Social, Community and Family Affairs if he intends to continue the pattern under the previous Minister of substantial increases in child benefit in view of the importance of child benefit in supporting families and particularly low income families; and if he will make a statement on the matter. [20461/97]
It is now widely recognised that child benefit is a very effective mechanism for tackling poverty, as it channels resources directly to families. It is of particular importance to families on low incomes and because it is not withdrawn when an unemployed parent takes up employment and is not assessed as means for other secondary benefits, such as differential rents, medical cards, and so on, it does not act as a disincentive to taking up employment.
The Deputy will understand that, while I share her views on the importance of child benefit, it would not be appropriate for me to comment on any possible further enhancement of the scheme in advance of the budget.
We are not asking the Minister to indicate the level of increase. We are asking him to indicate his policy on child benefit? Does he intend to increase child benefit substantially, as happened in the previous three budgets, and freeze child dependant allowances payable with certain social welfare payments as a means of eliminating poverty and unemployment traps? Is it Government policy to make payments for children and families through child benefit as distinct from child dependant allowances or other forms of support? As the Minister stated in his reply, it is now recognised as the most effective way to support disadvantaged families.
I could bluntly answer yes to the Deputy's question. I am taken by the views expressed on the issue of child benefit and the way it does not act as a disincentive to employment as opposed to other social welfare payments.
The previous Government made some effort to assist families with triplets which can cause major expense on families. Will the Minister give a commitment in the budget to make a contribution to such families at least twice a year?
Perhaps it is the air in Mayo, but most of the lobbying in County Louth relates to twins. Double the monthly rate of child benefit is paid in respect of multiple births of triplets or more. There is more lobbying for support for twins, probably because there are fewer sets of triplets than twins.
(Dublin West): Double payments of child benefit are paid to families with multiple births of triplets or more, but twins are not included. Will the Minister give a clear commitment to honour the promise in the Fianna Fáil manifesto to provide at least a 50 per cent increase in child benefit for twins? Perhaps he might even consider doubling the payment to end discrimination against families with twins.
To clarify, grants are made available to families who have multiple births: £500 in the case of twins, £300 in the case of triplets and £400 in the case of multiple births of four children or more. An additional grant of £500 is made payable in respect of twins on reaching four years of age and 12 years of age. On the Deputy's question, as with the other issues mentioned earlier including the commitment in our programme, it is being examined in the context of next week's budget. If there are steps we cannot take because of this year's budgetary constraints we will look at them for future years.
As a fortunate father of twins I cannot be seen to push the issue too strongly. I am interested in the problems of parents of pre-school children, particularly where for economic or other reasons the mother must go to work or the family is more disadvantaged. Does the Minister see merit in a parents' child care supplement payable to the mother in respect of pre-school children up to the age of five?
Child benefit is payable in respect of all children and I am not sure what the Deputy is getting at.
I am suggesting an additional payment.
The Deputy did not think of that payment when he was on this side of the House. Child benefit has been substantially increased over the last few years and rightly so.
Yes, it has increased by 60 per cent.
It is always difficult to think differently when one moves to the other side of the House but I caution against introducing too much complexity into the child benefit system. In that regard, I ask the Minister to give an undertaking that he will resist any proposals from whatever quarter, well-meaning or otherwise, to tax child benefit. That would be a retrograde step and would undermine the effectiveness of the current benefit, which goes primarily to the mothers of children and in many cases is the only income they have, regardless of the income to the household. The household may have a substantial income but the child benefit goes directly to the mother. The Combat Poverty Agency has suggested it ought to be taxed. Does the Minister agree that is a mistaken view?
Deputy O'Keeffe quoted from the Fianna Fáil manifesto and policy documents on these issues and I assure Deputy De Rossa that such a suggestion does not appear in those documents.
The danger is that what does appear is not implemented.
Nor is it on my priority list while I am in the Department.
The Minister's colleague, Deputy Woods, tried to tax it some years ago.
