The value of the child benefit scheme as a vehicle for the delivery of child income support is recognised on all sides of the House.
It is reflected also in the substantial investment the Government makes in the scheme, at a full year cost of around £475 million per annum. The last budget provided for increases in child benefit of £3 per month for each of the first two children in a family and £4 per month for the third and subsequent children. This brought the monthly rates payable from September 1999 up to £34.50 and £46, respectively.
Child benefit is effective in tackling poverty as it channels resources directly to families most in need and is of particular importance to families on low incomes. As it is not taxable, and is not withdrawn when an unemployed parent takes up employment or assessed as means for other secondary benefits, such as differential rents, medical cards, etc., it does not act as a disincentive to taking up employment or improving wages.