Willie Penrose (Westmeath, Labour)
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Question 95: To ask the Tánaiste and Minister for Health and Children if, in regard to the planned introduction of the early child care supplement, the latest estimate or assessment available to her Department of the likely number of claims that could be made in respect of children not resident here and the estimated cost in respect of such payments; the procedures which will be put in place to ensure verification of claims made; and if she will make a statement on the matter. [11000/06]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The early child care supplement, ECS, was introduced in the 2006 budget. The scheme is under the remit of the Office of the Minister for Children. The administration of the scheme is being undertaken by the Department of Social and Family Affairs, on an agency basis.

The scheme is a universal one and all parents or guardians of children up to six years of age are eligible. It is expected that a total of 260,000 families will qualify for the supplement in 2006, in respect of a total of some 350,000 children. The budget for the ECS in 2006 is €265 million, and in a full year it is estimated at €350 million.

Eligibility for the ECS is identical to that for the child benefit scheme, in that parents who receive child benefit in respect of children under the age of six years will also receive the supplement. Both schemes fall within the definition of a family benefit under EU Regulation 1408/71. One practical effect is that where a national of an EU state is working in Ireland, the worker is entitled, if she or he has a family resident in the EU, to payment of this benefit.

The situation is the same as for the child benefit scheme. The Department of Social and Family Affairs is making child benefit payments to 700 families, in respect of approximately 1,400 children, where the children are resident in another state covered by EU regulations. Approximately 490 of these children are aged under six years and will be eligible for payment of the ECS. The majority of these children are resident in the United Kingdom, most of which are in Northern Ireland.

In addition to this stock of cases, the weekly intake of child benefit claims in respect of non-resident families is 320. It is estimated that these families will have a total of 200 children under the age of six years. It is likely that many claims are from workers who have been present in Ireland for some time, but who were unaware of their entitlement to child benefit prior to recent media attention, and if so, this rate of new claims would most likely decline over the course of the year.

If, however, the rate remained constant, ECS payments of €10.8 million would have accrued by the end of 2006, which would be 4% of the total projected cost of the supplement this year. It is likely, however, that only €1 million of this would be paid by the end of 2006 equalling 0.3% of projected expenditure. This is due to the protracted nature of the claim decision process which involves communication with the authorities in the state in which the family resides.

The Department of Social and Family Affairs operates a strict verification process for child benefit claims and this will also apply to the ECS. The work status in Ireland is checked and birth certificates for the children obtained. It is necessary to correspond with the relevant authorities in the state where the family reside to see what entitlements may be in place there and what effect the supplement will have on payments in both states. In the course of this correspondence, particulars of the children in the family are rechecked and verified. Officials are reviewing these verification and other control measures operated for the child benefit scheme with a view to adapting and expanding them as appropriate for the ECS.

It is not possible to forecast with total accuracy the future number of non-resident children qualified for this payment. This will depend on future immigration flows, the numbers of immigrants who bring their children with them, the number of immigrants who decide to return home, the number of Irish workers with children living outside the State, for example in Northern Ireland, and future birth rates. Based on current figures the expenditure in respect of non-resident children is unlikely to be significant in the context of the overall spending on the scheme.