Dáil Éireann Debate, Wednesday - 10 November 2004
98 Mr. Boyle asked the Minister for Social and Family Affairs the measures he intends to put in place to alleviate the situation in view of the fact that 17% of families living in relative poverty in this country have a parent in full-time employment and that 35% of Irish children who live with relative poverty are members of such families. [28166/04]
Amharc ar fhreagraThe Deputy is no doubt referring to the Combat Poverty Agency's recent pre-budget submission to the Government which refers to children of families in low paid employment who are deemed to be at risk of poverty as their income falls below the 60% relative income threshold, that is, 60% of median or average income.
Tackling child poverty has been, and continues to be, one of the key priorities of this Government. The problem of child poverty is a multi-faceted one which requires a multi-faceted response through strategies such as the revised national anti-poverty strategy, the national children's strategy and, more recently, the national action plan against poverty and social exclusion. Through these strategies, the Government has committed to specific and measurable targets aimed at achieving greater equality for all in terms of access to an adequate income, appropriate education, health and housing, thereby seeking to break the cycle of disadvantage and exclusion experienced by certain children in society.
The Government recognises the importance of supporting and protecting families and children and is fully committed to achieving the NAPS target of reducing the number of children who are consistently poor to below 2% by 2007 and, if possible, to eliminate consistent poverty amongst children by then. Significant progress has already been made towards achieving this target. The number of children who are consistently poor, for example, has more than halved in the four year period 1997 to 2001, falling from 15.3% in 1997 to 6.5% in 2001.
One of the key factors underpinning this reduction in child poverty is the reduction in the numbers of parents who are unemployed. Our aim is to continue to maintain high levels of employment and to remove obstacles to taking up employment, especially in the case of lone parents and parents with large families. The work/no work divide is a key factor in child poverty risks. In 2000, for example, the risk of poverty for a child being reared by a lone parent reduced almost five fold when that parent took up employment. Similarly, the risk for children in two parent families reduced from over 33% to less than 10% when one parent started work, and further reduced to 1.2% when the second parent was also in employment.
Securing employment, therefore, is still the surest route out of poverty and this Government has presided over unprecedented reductions in unemployment and significant increases in employment levels. The level of unemployment has been reduced to 4.6%, from 11.9% in 1996, and long-term unemployment has now been reduced to 1.4%. A combination of strong economic performance, labour market interventions, income supports and tax reform have ensured that the downward trend has been constant. In addition to this, the Government has sought to ensure that increases in social welfare payments made progress towards its target of €150 per week in 2002 terms by 2007. The future direction of social welfare rates generally is a matter which is under continuing consideration within my Department.
The elimination of poverty in any society can only occur through tackling its causes, in particular the provision of employment. This Government has worked throughout its term to tackle the root causes of poverty across various themes, including income adequacy, educational disadvantage, unemployment, rural poverty and urban disadvantage, and, while we are already seeing reductions in consistent poverty, its eventual elimination is something for which we, as a society, need to strive. The groundwork for this is now taking place.
This approach is reflected in the investment which has been made in child benefit, an employment neutral payment which offers an effective means of channelling income support to low income families to tackle child poverty. Payments now amount to €131.60 for the first and second children and €165.30 for third and subsequent children.
Family income supplement also provides cash support by way of weekly payments to families, including lone parent families, at work on low pay. Improvements to the scheme, including the assessment of entitlements on the basis of net rather than gross income and the progressive increases in the income limits, have made it easier for lower income households to qualify under the scheme. For instance, the budget 2004 increases raised the weekly income qualification thresholds by €28 at each point, adding an extra €16.80 to the payments of most existing FIS recipients. In addition, the minimum weekly FIS payment was increased by €7, from €13 to €20. The number of persons in receipt of family income supplement at the end of October 2004 was 14,303, with an average weekly payment of €74.16. In the 2004 estimates, €56 million has been allocated for this scheme.
The importance of tackling child poverty is reflected in the fact that Ending Child Poverty was identified as one of ten special initiatives being undertaken under Sustaining Progress. Under this initiative, key policy issues are being addressed, including child income support arrangements. The work being undertaken under the special initiative will, I believe, further enhance our capacity to tackle the issue of child poverty. Further improvements to child income support arrangements will be considered in a budgetary context.
