Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I move: "That the Bill be now read a Second Time."

The purpose of this Bill is to give legislative effect to the payment in June of a bonus to recipients of child benefit. Just as the world emerged from the public health crisis caused by Covid-19, the war in Ukraine began. This, as well as the ensuing geopolitical instability, has caused an increase in inflation. The cost of living is particularly acute for parents of young families. The Government realises that it is an expensive time of year. Children have outgrown last year's summer clothes and money is needed for school tours and other excursions on top of the day-to-day costs of putting food on the table. That is why the Government announced in this spring's cost-of-living package further support for families through a range of social protection measures, including a €200 lump sum payment to pensioners, carers, people with disabilities and anybody in receipt of the working family payment the week of 24 April, at a cost of more than €250 million. An additional €100 payment will be also paid this year in respect of each child for whom the back-to-school clothing and footwear allowance is paid. For a child aged from four to 11 years, the payment will be €260. For children aged from 12 to 22 years, it will be €385. The hot school meals programme will be extended to all DEIS primary schools from September, benefiting 64,500 children, and the reason for this Bill - a €100 lump sum payment in respect of every child for whom child benefit is paid - will be paid in early June of this year. Together, these supports will provide more than €410 million in additional supports to households and families in need. Delivery of these supports reflects the Government's continuing commitment to supporting families, particularly those most in need.

Under its latest forecasts, the Economic and Social Research Institute, ESRI, expects inflation to moderate considerably due to falling energy costs. The ESRI anticipates inflation to average at 4.5% in 2023 before falling further to 3.5% next year. While this is welcome news, the Government knows that additional costs, particularly for basics like food and energy, remain stubbornly high. As a result, we are providing a continued programme of supports. These are in addition to measures that were introduced during 2022 to assist people and families with the cost of living, including: two fuel allowance lump sum payments of €125 in March 2022 and €100 in May 2022; a universal energy credit of €200 that was introduced in April 2022, followed by three further €200 energy credits; a reduction in third level student fees; a 25% reduction in childcare costs; and a 20% reduction in public transport fees. This wide array of measures clearly demonstrates the considerable focus the Government has placed on assisting ordinary people and families with the cost of living.

Turning to the purpose of the Bill, this legislation is required because changes to child benefit payments are explicitly excluded from the existing regulation-making powers under the Social Welfare Consolidation Act 2005. Accordingly, it is necessary to amend that Act to give effect to the Government's commitment to pay these child benefit bonuses in June. The temporary modification proposed allows me, in conjunction with my colleague, the Minister for Public Expenditure, National Development Plan Delivery and Reform, to make a regulation specific to child benefit. lf the Bill is enacted, the ensuing regulation will allow an increase of €100 in the rate of the June payment. This amendment of primary legislation is subject to a sunset clause of 31 December 2023.

Child benefit is a monthly payment of €140 to support parents and guardians. It is usually paid to the mother. Child benefit is paid for each child who is under 18 years of age if he or she is in full-time education or training or has a disability and cannot support himself or herself. This cost-of-living child benefit bonus payment of €100 will be paid in respect of 1.203 million children at a cost of approximately €120 million.

I will now turn to the sections of the Bill. It is a short, straightforward Bill.

Section 1 contains the substantive part of the Bill. It temporarily modifies section 292 of the 2005 Act so that regulations can be made that will allow a summer bonus to be paid to child benefit recipients.

Section 2 is simply the Short Title and construction of the Bill. I remind Deputies that last year's budget represents the largest social welfare budget package in the history of the State.

This is probably the shortest Bill I have ever taken through the Houses. Nonetheless, it represents an important and timely support for the more than 600,000 families and more than1.2 million children who will benefit. It is a particularly important support for working families. There are different views on the universal nature of child benefit, but it is one of the only measures at my disposal in the Department of Social Protection to support working families with young children. I am pleased this Bill will allow us to provide a €100 bonus payment in June. I look forward to hearing Deputies' contributions.

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