Dáil Éireann díospóireacht -
Thursday, 19 Oct 2000

Vol. 524 No. 4

Written Answers. - Social Welfare Benefits.

Gerry Reynolds

Ceist:

124 Mr. G. Reynolds asked the Minister for Social, Community and Family Affairs if he will have the child benefit in the case of twins increased to double the normal payment; and if he will have any increases in child benefit paid out from May each year rather than September. [22788/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The position in relation to the issue of child benefit entitlements and multiple births is as follows. Prior to the introduction of the Social Welfare Act, 1998, CB was payable at the normal rate for each child where three or more children were born together. In the case of twins, CB was paid at the normal rate but a grant of £500 was payable at the birth of twins and further grants of £500 were payable when the twins reached the ages of four and 12.

In the Social Welfare Act, 1998, I introduced two key additional measures designed to improve the overall package of benefits available to parents of multiple births. First, the rate of CB payable in respect of twins was increased to 150% of the normal CB rate. Second, the £500 grants, which previously were confined to families with twins, were extended to include also families with multiple births of three or more children. Both these measures took effect in September 1998 at a full-year cost of £4.8 million and fully fulfilled our commitments made on the issue prior to the election.

In the interim, I have provided for very substantial investments in the CB scheme. The 1999 budget provided for a full-year investment of over £40 million, while the most recent budget provided for a full-year investment of almost £106 million, bringing total investment in the scheme up to some £575 million annually. Additionally, the Government has made a commitment to substantially increase the payment in the lifetime of the PPF, with a priority focus towards £100 per month for third and subsequent children.

From September, the basic child benefit monthly rates rose to £42.50 in respect of each of the first two children and £56 in respect of the third and subsequent children. These improvements have benefited all families with children, including families with twins, and represent, in my view, the most effective use of the available resources. The cost of providing for the double CB payments for twins is estimated at £5.5 million in a full year.

In relation to the timing of CB increases, it should be noted that the effective payment date of the increase coincides with the start of the school year in September and the increased financial burden faced by parents at this time. In recognition of the fact that approximately 40% of children are in families who are in receipt of weekly social welfare payments, the Government has brought forward the implementation dates of payment of weekly social welfare rates on a progressive basis since we took office.

Next year, general social welfare increases will be paid in April to coincide with the start of the tax year. In 2002, in line with the change of the tax year to the calendar year, the effective payment date of social welfare increases will be brought forward to January, a full 23 weeks earlier than when we came into office. Those families, who consist of the families in greatest financial need, will benefit from receiving an increase in their social welfare weekly payments progressively earlier in the next two years.

Whereas the effective date of child benefit increases has not been brought forward, the continued thrust of improvements in the monthly rates, in line with the PPF commitment, will result in gains for all families, including as already stated, those families with twins.