Written answers

Wednesday, 29 June 2005

Department of Social and Family Affairs

Social Welfare Code

10:00 pm

Paul McGrath (Westmeath, Fine Gael)
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Question 268: To ask the Minister for Social and Family Affairs if he will review the payment of child dependant allowance rate to each social welfare benefit and allowance payment; the reason for the difference in child dependant rates; and if he will make a statement on the matter. [23335/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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There are currently three different weekly rates of child dependant allowances payable to social welfare recipients, namely, €16.80, €19.30 and €21.60. To standardise the three main rates of allowances at the highest rate of €21.60 would mean that approximately 243,000 full-rate payments and 93,000 half-rate payments would be increased at a cost of approximately of €59 million annually.

The policy direction followed by successive Governments has been to concentrate resources for child income support on the child benefit scheme rather than child dependant allowances because the loss of child dependant allowances by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities.

Child benefit is neutral vis-À-vis the employment status of the parents and consequently does not contribute to such potential poverty traps. The Government's commitment in this regard is reflected in the substantial resources invested in the child benefit scheme since entering office, including the increases announced in budget 2005, which came into effect from April this year. These increases will bring the monthly rate of child benefit to €141.60 in respect of each of the first two children and €177.30 for third and subsequent children.

In the partnership agreement Sustaining Progress, the importance of child income support arrangements, including child dependant allowances, is recognised with a commitment to examine the effectiveness of current arrangements in ending child poverty. The question of further rationalisation of child dependant allowance will be a matter for consideration in a budgetary context and in the context of priorities generally.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 269: To ask the Minister for Social and Family Affairs if he will extend the rights to the free schemes for widows aged 60 and over to all widows in this age category. [23386/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The household benefits package, which comprises the electricity-gas allowance, telephone allowance and television licence schemes, is generally available to people living permanently in the State aged 66 years or over, who are in receipt of a social welfare-type payment or who satisfy a means test. The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare-type payments. People aged over 70 years of age can qualify regardless of their income or household composition. Widows and widowers aged from 60 to 65 whose late spouses had been in receipt of the household benefits package retain that entitlement to ensure that households do not suffer a loss of entitlements following the death of a spouse.

A range of proposals, including that referred to by the Deputy, have been made to extend the coverage of the household benefits package. These proposals are kept under review in the context of the objectives of the scheme and budgetary resources.

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