Dáil Éireann Debate, Wednesday - 15 December 2004
32 Mr. Morgan asked the Minister for Social and Family Affairs if, in view of the Government’s position that child benefit remains the best way to help parents with child care costs, consideration has been given by him to the inclusion of a child care supplement for children under five years of age as a top-up to child benefit. [33318/04]
Amharc ar fhreagra49 Ms Burton asked the Minister for Social and Family Affairs his views on the introduction of a child benefit supplement as recommended by NESC and other statutory agencies; his further views on whether such a payment would target additional resources to children and families in extreme poverty; and if he will make a statement on the matter. [33443/04]
Amharc ar fhreagra79 Mr. Durkan asked the Minister for Social and Family Affairs the extent to which the level of payments in respect of child benefit equates to child care costs in cases in which both parents work outside the home; if he has examined the possibility of increasing the level of payment to a more realistic level; and if he will make a statement on the matter. [33529/04]
Amharc ar fhreagraI propose to take Questions Nos. 32, 49 and 79 together.
Child benefit is paid to 520,000 families in respect of approximately 1 million children, at a total cost of almost €1.916 billion in a full year. This includes the extra €136 million provided in the budget. Child benefit delivers a standard rate of payment in respect of all children in a family regardless of income levels or employment status. It supports children and assists those on low incomes in relative terms. It helps to contribute to the cost of raising children, regardless of the household's income or employment status. Child benefit does not distort parental choice in respect of labour force participation and contributes towards alleviating child poverty. The concentration of additional resources in child benefit avoids the employment disincentives associated with increased child dependant allowances and has underpinned the policy of successive Governments since 1994.
Over the period since 1997, the monthly rates of child benefit have increased by €93.51 at the lower rate and €115.78 at the higher rate, increases of 246% and 234% respectively, compared to inflation of 26.9%.
This level of increase is unprecedented and delivers on the Government's objective of providing support for children generally while offering real choice to all parents. In addition, the 2005 budget provided for a €10 per month increase, or 7.6%, in the rate of child benefit payable in respect of each of the first two children and €12 per month, or 7.3% increase in the rate payable in respect of the third child and subsequent children. These increases will take effect from April 2005. The introduction of an age-related payment structure for child benefit has been proposed on a number of occasions in the past. However, in recognition of the increased expense encountered by larger families, with younger and older children, rates have been structured towards payment of the higher rate in respect of the third child and subsequent children. This policy provides a consistent level of support for parents regardless of the age of the child.
The child benefit payment fulfils a number of roles, the most important of which are assistance to all households in recognition of the higher cost incurred and the alleviation of household poverty associated with children, without adding to labour market disincentives. The very substantial increases in benefit in recent years can make a significant contribution to meeting those costs.
Responsibility for child care issues generally rests with the Department of Justice, Equality and Law Reform. As regards a more targeted child income support such as a child benefit supplement, the partnership agreement, Sustaining Progress, recognises the importance of child income support arrangements, with a specific commitment to examine the effectiveness of current arrangements in tackling child poverty.
In the context of this commitment, the National Economic and Social Council, NESC, has agreed to undertake a review of child income support and in particular the possible merging of family income supplement and child dependant allowances into a second-tier child income support payment. This review, which NESC expects to complete in 2005, will inform the development of future policy in this area and I look forward to receiving the report in due course.
Parents across the State are struggling to balance work and family life. Most families do not have the luxury of one parent being able to stay at home. In its budget submission, Sinn Féin focused on the whole question of child care and supplements for children under five years as a top-up to child benefit. We believe this would be a significant step towards addressing the extra financial burden faced by parents of a child below school-going age. Given that the Government has outlined its position on more than one occasion to the effect that child benefit remains the primary instrument for assisting parents with child care costs, will the Minister give serious consideration to this proposal? Such a supplement will not discriminate against families where one of the parents decides to stay at home but will enable them to make such a choice. If the Minister is unwilling to proceed with such a proposal, will he outline clearly the measures with which he intends to tackle the real difficulties being faced by parents of young children because of the rising costs of child care?
There are a number of issues to be addressed here. I am aware of the Sinn Féin proposal and will certainly take a look at it as regards the child benefit structure affecting toddlers of up to five years, which I believe is the Deputy's general concern.
There is a discussion on whether it is appropriate to have child benefit based on age. It is currently based on the number of children in a family. We could have a good debate on whether children under the age of five are more expensive than children from age ten to 15. I have a fair idea of the answer to that. The NESC is looking at this area and we will see where that goes.
Child benefit is not focused primarily on child care costs. It is an income payment on behalf of the child in question. Child care is a broader issue, which has been led by the Department of Justice, Equality and Law Reform and which involves taxation issues and supply issues. Long before any of us in this House ever heard of the concept of child care, children's allowances were being paid. It would be wrong of the Government to pretend that child benefit is our response to the child care issue. We need to respond to the child care issue across the different Departments, including the Department of Finance, the Department of Education and Science, the Department of Health and Children and my Department.
Would the Minister consider making a submission to the National Economic and Social Forum? The Department of Education and Science and the Department of Justice, Equality and Law Reform have both made submissions. It would be prudent if the Minister's Department made a submission. Child care is scattered everywhere and we must get it focused into one agency. The Minister is probably right to say that it is not within the remit of his Department. Child benefit is income support for children. The One Parent Exchange and Family Network stated that it was delighted that child benefit was going up each year as it would go towards child care, but that it could probably do with a bit more. Deputy Crowe was right when he stated that people actually use it to finance child care which is crippling families all over Ireland. A positive way to end our discussions on this area would be for the Minister to get his officials to make a submission on that. It might be helpful in this debate.
We will certainly work closely with the NESC and will make proposals and submissions to it. I referred to the possible merging of the family income supplement and the child dependant allowance into a second tier child income support payment. There are very exciting possibilities in this area to focus on child poverty and I look forward to the report.
Are there any proposals to have joined up Government in this area? The Department of Health and Children, the Department of Justice, Equality and Law Reform, the Department of Education and Science and the Minister's own Department are all involved in the care and support of children and families. One Department seems to fob off the responsibility to another. Is there anything happening so that we can have a form of joined up Government, whereby one co-ordinated approach can be taken? Has the Minister any plans to lead something like this?
I have a feeling I will regret using that phrase.
I will keep reminding him.
I think the Deputy has got to like it. We asked the NESC to carry out this review of child income support and to review the idea of merging these two allowances. Child care is being led by the Department of Justice, Equality and Law Reform. There are a number of groups at official level right throughout the whole area. There have been a number of studies, meetings and presentations made to the different Departments, but the Department of Justice, Equality and Law Reform is leading it as it has substantial funds under this heading. Other Departments mentioned, including my own support it.
In view of the recent Cabinet decision to regularise the citizenship of foreign nationals, will the Minister now give consideration to restoring universal child benefit for all children who are born in this country and who are living here at any given time?
There are a number of issues here which extend beyond my responsibilities. Many of the issues relate to the Department of Justice, Equality and Law Reform. There is a two year habitual residence clause and the Minister for Justice, Equality and Law Reform and I will continue to keep that under review in the context of issues within my Department. At the moment I do not have any proposals to make any changes in that area.
Written Answers follow Adjournment Debate.
