Bernard Allen
Ceist:59 Mr. Allen asked the Minister for Finance his policy for the development of the treatment of children in budgetary policy over the coming two budgets. [2534/05]
Amharc ar fhreagraTuesday, 1 February 2005
Ceisteanna (64)
Freagraí scríofa
I understand the Deputy's question is concerned with the provision of financial support for children in a budgetary context.
The Department of Social and Family Affairs has the primary role in the provision of financial support in respect of dependent children. Child benefit is the main fiscal instrument through which such support is provided. Child benefit provides support to all parents or guardians in their parenting role irrespective of their economic or income status and, therefore, does not contribute to employment disincentives or poverty traps.
In line with this overall policy approach, the Government commenced a major initiative to substantially increase the rates of child benefit. With effect from April next, child benefit rates will have, since 2000, increased by almost €88 per month in respect of the first and second qualifying children and by €106 per month for each subsequent child. This means that 92% of the target rates increases announced in budget 2001 have now been delivered and, as stated in my recent budget speech, I will complete the transition to a higher rate of child benefit in next year's budget.
The social welfare system also provides additional income support in respect of children by way of child dependant allowance increases to an underlying social welfare payment. Furthermore, family income supplement, FIS, provides income support to families at work on low pay and who have children. One of the special initiatives under the Sustaining Progress social partnership agreement is concerned with ending child poverty and, in that context, the effectiveness of merging child dependant allowance with family income supplement to provide a seamless source of child income support to low income families is being examined. NESC is undertaking this examination and the outcome of this work will be taken into account by relevant Departments in the formulation of future policy in this area.