Séamus Brennan (Dublin South, Fianna Fail)

Child dependant allowance is an additional payment made to social welfare recipients in respect of each qualified child dependant. From January, full child dependant allowance is payable where a person's spouse or partner's gross weekly income does not exceed €220. From January the half-rate allowance will be payable where incomes in excess of that figure do not exceed €350. In the context of the 2005 budget I have decided to raise the threshold on spouse's or partner's earnings to €350 per week.

I have gone some way towards addressing the concerns about this measure, which was changed last year, by increasing the earnings threshold. That will help because persons may retain entitlement to half-rate child dependant allowance with family incomes of almost €26,000 when earnings and social welfare personal rates of €148 are combined. Where there is a non-earning or lower earning spouse or partner, on €350 per week or less, full or half-rate child dependant allowance as appropriate continues to be paid and approximately 4,600 families will benefit from this measure. I also estimate that most claimants affected by the threshold will be those with partners in full-time employment with earnings considerably in excess of the €350 threshold.

While I have not changed this completely by increasing the threshold fairly substantially, given the other demands on our resources, I have gone some way towards addressing the situation. I can keep these figures under review in the future.