I propose to take Questions Nos. 136, 183 and 420 together.
Child benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a physical or mental disability. The estimated expenditure on child benefit in 2013 is around €1.9 billion and it is currently paid to around 609,000 families in respect of some 1.16 million children.
Budget 2013 provides for a reduction in child benefit rates to €130 per child per month for the first, second and third child in a family and to €140 per child per month for the fourth and subsequent children. Unfortunately, it has not been possible to exempt income support to families from the general budgetary strategy, given the level of adjustments required. Although this Budget measure is primarily designed to reduce overall public expenditure with a view to restoring stability to the public finances, some of the savings from this measure have been redirected towards services targeted at low-income families and includes an Area Based Approach to Child Poverty; after school childcare and additional funding for school meals. While child benefit, as a universal payment, can be an important source of income for all families, especially during a time of recession and high unemployment, the social protection system also provides assistance to low income families with children through the payment of qualified child increases (QCIs) on primary social welfare payments and through the family income supplement (FIS) payment. Both of these provide a level of assistance which is directly or indirectly linked with a household’s income situation. Budget 2013 maintains both the QCI rate and the FIS income limit thresholds.
Achieving a better design of the overall system of child income supports raises complex issues about the effectiveness and efficiency of the full range of income supports currently provided to families and their children. In this context and in line with a commitment in the Programme for Government, I established in 2011 an Advisory Group on Tax and Social Welfare, which has been tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes achieved, particularly child poverty outcomes. The Advisory Group prioritised the area of family and child income supports and has completed its work on this area. Their report is currently receiving my consideration and will be published in the near future.
I would draw the Deputies’ attention to the fact that while the Comprehensive Expenditure Review, 2012 to 2014, published in December, 2011, provided for a reduction of a further €540 million in expenditure by my Department in 2013, the Government was able to reduce the net savings required for this year to €390 million. This was €150 million less than originally indicated. This enabled the Government to ensure, for the second year in a row, that there was no reduction in primary weekly rates of payment.
In 2013 the Department will spend €20.257 billion on the wide range of schemes and services it operates. The Department of Public Expenditure and Reform's Expenditure Report 2013 published by Government last December provides for additional new expenditure reduction measures of €440 million to be achieved in 2014 in the Department of Social Protection budget. Reducing overall expenditure in 2014 in line with this target will be very challenging. No decisions have been made at this stage as to how these targets will be met. The Government will consider this having regard to all of its commitments. The Deputies can be assured that my colleagues and I will do our best to ensure that the burden of resolving the crisis does not fall disproportionately on those who depend on income supports from my Department.
