Written answers

Thursday, 30 June 2005

Department of Social and Family Affairs

Social Welfare Code

8:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 28: To ask the Minister for Social and Family Affairs if he intends to introduce a second tier support payment for children in unemployed or low wage households; if so, the progress which has been made to date in regard to same; and if he will make a statement on the matter. [22886/05]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 38: To ask the Minister for Social and Family Affairs the progress to date on his review of the second tier payment for children; and if he will make a statement on the matter. [22905/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 28 and 38 together.

My Department provides child income support in a number of ways. The principal support is child benefit, which is neutral vis-À-vis the employment status of the child's parents and does not contribute to poverty traps. Over the period since 1997, the monthly rates of child benefit have increased by €103.51 at the lower rate and €127.78 at the higher rate, increases of 272% and 258% respectively. Child benefit rates now stand at €141.60 per month for each of the first two children and €177.30 per month for the third and each subsequent child.

Child dependant allowances are paid in addition to weekly social welfare payments. Since 1994, successive Governments have held the rate of child dependant allowances constant while concentrating resources for child income support on the child benefit scheme. It is important to recognise that over that period, the combined child benefit-child dependant allowance payment has increased by more than double the rate of inflation.

In addition, my Department provides cash support by way of weekly payments to families, including lone parent families, at work on low pay, through the family income supplement scheme. A number of improvements have been made to the scheme over the years, including the assessment of entitlement on the basis of net rather than gross income and progressive increases in the income thresholds, making it easier for lower income households to qualify for payment.

The National Economic and Social Council is examining the merging of child dependant allowances with the family income supplement scheme, as a way of addressing the issue of child poverty by channelling resources to low income families without creating disincentives to employment. I look forward to receiving the NESC report in the near future.

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