Seanad debates

Thursday, 23 March 2006

Social Welfare Law Reform and Pensions Bill 2006: Committee and Remaining Stages.

 

12:00 pm

Michael Brennan (Progressive Democrats)

Yes. A four-child family on €20,000 gross income could receive €2,000 in child care, €8,000 in child benefit, €8,000 in family income supplement and €480 in back to school allowance, comprising a total social welfare package of approximately €18,000 and giving a total income of €38,000. Very little taxation would be involved due to the low income.

Taking the example of an unemployed family with two children, both of whom are under six years of age, it will receive unemployment assistance of €16,000. Using approximate figures, the family will also receive €2,000 in child care, €3,600 in child benefit and €240 in back to school allowance and will probably qualify for the fuel allowance of approximately €400, bringing the family's total income to €22,000, an additional €6,000 on the basic unemployment assistance figure.

As Senators can see, all of the extra income is child-focused. If the family does not have any children, it will not receive the extra income. Keeping these numbers moving is the best way to get money into those families and tackle child poverty. There are dozens of other examples that I would like to publish at some stage, as they show what is possible.

For this reason, tapering and phasing are required. The transition from being able to get these types of unemployment funds to enter the world of work must be smooth. Like an accelerator and a clutch, a person must rely on one while easing off the other. This is critically important in welfare, as people would stay in a poverty trap instead of moving in the direction they should, that is, to work, which is the best response to child poverty.

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