Mary Hanafin (Dún Laoghaire, Fianna Fail)

Yesterday, the Minister for Finance announced the Government decided that from now on child benefit will no longer be paid in respect of those who are 18 years old. At that age they are effectively treated as adults in most respects. This change will be phased in gradually. A half payment will be made in respect of existing and future qualifying children from January 2009. From January 2010, the payment will cease from the 18th birthday.

Special alleviating measures are being introduced for young people in social welfare dependent and low-income families, with a special increase of €15 per week in the qualified child payment for those aged 18 years. It is expected that some 10,000 young people will benefit from this measure. In addition, the back to school clothing and footwear allowance will be increased by €215 to €520 per annum for eligible 18 year olds. Recipients of family income supplement will receive additional payments of up to €15 per week for each dependant aged 18 years where they are not otherwise being compensated. These transitional measures will cease in January 2011. The net savings from this change to child benefit entitlements is expected to be €27.6 million in 2009, €67.2 million in 2010 and €79 million per annum from 2011 onwards.

Even in these difficult economic times, the Government has prioritised delivering real increases in social welfare payments. Some Opposition spokespersons have referred to the fact that the 2009 social welfare increases are below this year's inflation rate. That is not the point.

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