Written answers

Thursday, 8 June 2006

Department of Social and Family Affairs

Social Welfare Benefits

5:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 141: To ask the Minister for Social and Family Affairs if child benefit will be paid to children in full time education up to the age of 22 years as is the case with the child dependant allowance; the estimate of the amount this proposal would cost per annum; and if he will make a statement on the matter. [22036/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Unlike other social welfare payments requiring qualifying contributions or assessment of means, child benefit is a universal payment, paid in respect of children up to the age of 16 years regardless of the level or source of parental income. It continues to be paid in respect of children up to age 19 who are in full-time education, or who have a physical or mental disability. The policy of the Government over the past number of years has been to substantially increase the amount spent on child benefit for all families. Commitment to this policy is reflected in the significant resources invested in the scheme since 2001, increasing monthly payments to €150 for each of the first two children and €185 for the third and subsequent children from April 2006, increases of €96.04 (177%) and €113.89 (160%) respectively. According to figures collected by the Central Statistics Office under the Quarterly National Household Survey for the period December 2005 to February 2006, there were an estimated 88,600 students aged 19 to 22 years. Extending child benefit to this category would therefore entail substantial cost, estimated to be in the region of €167 million annually.

In recognition of the need to target limited available resources at persons on low incomes with children in full-time education, a number of provisions have been introduced, including the extension of entitlement to child dependant allowance to age 22 where the parent of a full-time student (including third level) is in receipt of either a long-term social welfare payment, or a short-term social welfare payment for six months or more (short-term schemes include such payments as Unemployment Benefit and Assistance, Disability Benefit and Supplementary Welfare Allowance). In addition, in-work cash payments are provided to low-paid employees with families through the family income supplement (FIS) scheme. Under this scheme, a qualified child is any child under the age of 18 or aged 18 to 22 if in full-time education. This supplement is paid where a family's weekly income is below a specified income limit for the family size, and is calculated at 60% of the difference between the net family income (gross pay less tax, PRSI, health contribution, superannuation) and the relevant income limit. Further information regarding the FIS scheme can be obtained from any local office of the Department. The question of further improvements to the child benefit scheme is a matter for consideration in a budgetary context, having regard to available resources and Government commitments.

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 142: To ask the Minister for Social and Family Affairs further to Parliamentary Question No. 222 of 15 December 2005, his plans to allow persons to continue to work and pay PRSI pension contributions beyond pension age to gain eligibility for an old age contributory pension; and if he will make a statement on the matter. [22055/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The National Pensions Review was published in January and it includes recommendations from the Pensions Board designed to encourage people to continue working after normal retirement age. The measures suggested involve allowing people to defer receiving their social welfare pension and to grant them an actuarially enhanced payment when they do claim. The Pensions Board also considered that if this were combined with allowing those with less than full entitlements to count contributions made after age 65 or 66 in order to improve their contributions record, this would increase the incentive for longer working within the social welfare pensions system. The Department is not in a position to operate such measures at present. However, I will continue to have the matter further examined in the context of the Pensions Review which is currently under way.

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