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Anti-Poverty Strategy.

Dáil Éireann Debate, Tuesday - 21 June 2005

Tuesday, 21 June 2005

Ceisteanna (380, 381, 382, 383)

Brian O'Shea

Ceist:

401 Mr. O’Shea asked the Minister for Social and Family Affairs when he will make an announcement regarding the €700,000 set aside for the money advice and budgeting service in the budget for 2005; and if he will make a statement on the matter. [21149/05]

Amharc ar fhreagra

Brian O'Shea

Ceist:

402 Mr. O’Shea asked the Minister for Social and Family Affairs if it is proposed that MABS is to depart from its solely advisory role to become an agency which will provide financial assistance to persons; and the reason this is considered necessary or desirable; and if he will make a statement on the matter. [21150/05]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 401 and 402 together.

My Department has overall responsibility for the money advice and budgeting service, MABS, which provides assistance to people who are over-indebted and need intensive help and advice in coping with their debt problems. The service is operated by 52 independent companies throughout the country.

The MABS programme provides money advice to individuals and families who have problems with debt and who are on low income or in receipt of social welfare payments. The service places an emphasis on practical budget-based measures that help people to move permanently from dependence on moneylenders and to access alternative sources of low cost credit particularly in their local credit union.

The MABS service has been allocated €13.62 million to ensure the continued development of the service in 2005. This represents an increase of €2.22 million or more than 19% on the 2004 allocation. The allocation this year includes a sum of €1 million to address two particular issues.

I am concerned that where severe hardship exists in cases of over-indebtedness, MABS customers receive the most appropriate assistance to deal with the situation. The MABS service is considering ways in which support can be provided directly to MABS customers who have particular difficulties with debt problems and to establish a mechanism where this can be dealt with in a practical way. It is envisaged that a specific fund will be established for this purpose which would be administered at a remove from the local money advice and budgeting service. The arrangements are being finalised and I expect to be in a position to announce their commencement in the autumn. This fund will be made available only where conventional avenues of support cannot be of assistance and only in cases of extreme hardship.

I intend to have a fully automated payment system put in place on a national basis which will allow MABS employees to make direct payments to creditors on behalf of customers and also provide detailed statistics upon demand. These statistics will be invaluable in aiding the future development of MABS by providing a greater understanding of the issues surrounding indebtedness. This new payment system, MABSIS, will be implemented by July 2005. MABS is centred on the needs of the customer and it is vital that the various needs of all customers are met in innovative ways. These initiatives will add another positive dimension to the role of MABS.

David Stanton

Ceist:

403 Mr. Stanton asked the Minister for Social and Family Affairs his views on the fact that Ireland has the second highest level of child poverty in Europe at 15.7% (details supplied); and if he will make a statement on the matter. [21291/05]

Amharc ar fhreagra

The figure for child poverty in Ireland of 15.7% based on 50% of median national income in 2000 was referred to in the recent Combat Poverty Agency "Ending Child Poverty" policy statement which, in turn, was drawn from a recent UNICEF report on child poverty.

As I restated when I launched the agency's statement, tackling child poverty continues to be among my key priorities. Strategies to address child poverty and the measures to give effect to them are set out in the national action plan against poverty and social exclusion and in the national children's strategy. The importance of tackling child poverty is reflected in the fact that Ending Child Poverty is one of ten Sustaining Progress special initiatives. One of the key strategies for reducing child poverty is the reduction of 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 for lone parents and parents with large families.

The most significant measure to tackle child poverty by my Department has been the substantial increases in child benefit payment rates. Between 1997 and 2005, the rate of child benefit rose from €38.09 per month for the first two children and €49.50 for each child thereafter to €141.60 per month for each of the first two children and to €177.30 per month for the third and each subsequent child. Child benefit is paid to more than 540,000 families in respect of approximately 1 million children, at an estimated cost of €1.9 billion in 2005. It delivers a standard rate of payment in respect of all children in a family regardless of income levels or employment status.

Through the family income supplement scheme, my Department provides cash support by way of weekly payments to families, including lone parent families, at work on low pay. Recent improvements to the scheme, including the assessment of entitlements on the basis of net rather than gross income and progressive increases in the income limits, have made it easier for lower income households to qualify under the scheme. To address the situation of those children who are most at risk of poverty I am giving serious consideration to the introduction of a second tier of supports, aimed specifically at families in greatest need. A study is being carried out by the NESC on the possibility of amalgamating social welfare child dependant allowances with family income supplement payments, in an effort to channel extra resources to low income families without creating disincentives to employment. In addition, a sub-group of the senior officials group on social inclusion is examining obstacles to employment for lone parent families and will shortly present its report.

My Department is also participating in an interdepartmental working group on early child care and education, chaired by the National Children's Office. The work of this committee is at an advanced stage and the outcome will make an important contribution to finding the right mix of services and income support to facilitate employment take up and care for children. The causes of poverty among children and its effects are multifaceted requiring a multi-policy response. A wide range of data is required to effectively monitor, evaluate and develop such policies. It is for that reason my Department and the Department of Health and Children, through the National Children's Office, are jointly funding a national longitudinal study on children. The study will be the most significant of its kind to be undertaken here, particularly in terms of the cost, scope and length of study period. It is anticipated that 10,000 children from birth and 8,000 children aged nine will be recruited to participate in the study, which is expected to commence later this year.

Assisting and supporting vulnerable families and their children is one of our main challenges as a society. Through the initiatives we are taking to combat poverty and social exclusion, the Government is giving priority to ensuring that vulnerable families and their children have the share of life chances and quality of life which our prosperity as a nation demands.

David Stanton

Ceist:

404 Mr. Stanton asked the Minister for Social and Family Affairs his views on the fact that, according to the Combat Poverty Agency policy statement on child poverty, lone parents here have the highest replacement rates and levels of marginal taxation in Europe which is conducive to the formation of poverty traps for lone parents; and if he will make a statement on the matter. [21292/05]

Amharc ar fhreagra

The findings of the recent Combat Poverty Agency, CPA, policy statement Ending Child Poverty, are based on an analysis of income support packages for families in 22 industrialised countries. The statement indicated that Ireland has the highest replacement rate for lone parents in the 22 countries studied, replacement rates are often defined as the ratio of social welfare benefits to wage-indexed gross earnings, and that these rates are a product of the relatively generous lone parent income support package in Ireland. However, the value of this support is diminished by shortcomings in service provision, especially with regard to child care.

To continue to make progress in tackling child poverty and poverty in general, the Government is accelerating the implementation of proposals that will address problems that are contributing to child poverty. Particular emphasis is placed on the three critical areas of increased and targeted child income supports, measures to encourage lone parents back to education, training and work and the delivery of additional child care places.

A sub-group of the senior officials group on social inclusion is examining obstacles to employment for lone parent families, with particular emphasis on income supports, employment, education, child care and support programmes and information. This group is scheduled to report to the Cabinet committee on social inclusion by the end of July.

We must also look closely at income supports and at how we can adjust those supports to better address the social problems that can arise for those who receive these payments. In this regard, my Department has established a working group to review the income support arrangements for lone parents. Issues being addressed include the contingency basis of the one-parent family payment, cohabitation, individualisation, maintenance and secondary benefits. The findings of this group will feed into the work of the senior officials sub-group.

I am also giving serious consideration to the introduction of a second tier of child income supports, aimed specifically at families in greatest need. A study being carried out by the National Economic and Social Council is examining the possibility of amalgamating social welfare child dependant allowances with family income supplement payments. The objective is to provide an integrated channel for resources to low income families without creating disincentives to employment. It is intended that the outcome of these reviews will contribute to final concrete proposals designed to better support and encourage lone parents in achieving a better standard of living, employment and education opportunities, and a better future for themselves and their children. These will be the main criteria against which recommendations in the reports will be judged. I am committed to reforms that will improve the quality of life for lone parents and their children by offering them respect and support while avoiding poverty traps.

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