Oireachtas Joint and Select Committees

Wednesday, 26 November 2014

Committee on Education and Social Protection: Select Sub-Committee on Social Protection

Social Welfare Bill 2014: Committee Stage

1:45 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

As we noted with the last measure, it is always welcome when a Government cops on and reverses a cut, albeit only a partial reversal in this case. The €5 restoration to child benefit each month does not do anything to offset the €400 million taken annually since 2009. It is a substantial cost. In the Minister's budget speech, it was mentioned that this was the first of two steps, with the second step coming next year. Why is that not set in legislation, as we have the opportunity to indicate there will be an additional €5 paid in 2016? That is strange, although there may be a technical reason. The measure was announced but I am concerned that like many announcements, what is said might see no follow-up. As Deputy O'Dea noted, perhaps the promise might not be kept.

This issue regards cuts in social welfare such as child benefit but particularly those payments which affect lone parents and children. Others have mentioned the promise of introducing the Scandinavian model of child care. I will raise the matter now as we have been discussing child benefit. Some people manage to use child benefit to offset costs and the Government had the opportunity to address the substantial cost of child care in this State, or at least try to help people in that way. The European Commission in June this year indicated that Ireland has the highest fees in the European Union for early childhood education and care for children under three years old. According to the OECD figures from earlier this year, Ireland is one of two of the most expensive countries in the world for child care, with the average family with two children spending 40% of the average wage on child care costs. These costs are even higher in Dublin, although I will not get into a debate about Dublin versus the rest of the country. The costs are unsustainable.

I welcome the increase in the number of people going to work but many of these people will see major challenges in dealing with child care costs. A discouraging factor for unemployed people with child care issues - whether lone parents or in cases where there is a mother and father in the family - is that costs are the same. The child benefit in no way covers that cost, especially considering what it is in Dublin and elsewhere.

Are there plans to address it, as none were announced on budget day or since? Is there a plan to increase the number of months or years for free child care places? Is child benefit the only mechanism through which there will be some relief to those who have had other benefits cut?

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