Written answers

Tuesday, 14 November 2006

Department of Social and Family Affairs

Child Support

9:00 am

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 127: To ask the Minister for Social and Family Affairs his views on paying all child dependent allowances at the same maximum rate; the cost of same; and if he will make a statement on the matter. [37618/06]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 130: To ask the Minister for Social and Family Affairs his plans to increase the child dependent allowance in budget 2007; and if he will make a statement on the matter. [37590/06]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 132: To ask the Minister for Social and Family Affairs his views on increasing the child dependent allowance to one-third of the adult social welfare rate; and the cost of same; and if he will make a statement on the matter. [37619/06]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 139: To ask the Minister for Social and Family Affairs if he has received the promised recommendation from the National and Economic Social Council on the targeting of child poverty through a new payment that is a second tier to the child benefit payment aimed at the least well off children; and if he will make a statement on the matter. [37589/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 127, 130, 132 and 139 together.

Since 1994, successive Governments have followed the policy of holding the rate of qualified child increases constant while concentrating additional resources for child income support on the child benefit scheme. Child benefit is neutral vis-À-vis the employment status of the child's parents and does not contribute to poverty traps, whereas the loss of qualified child increases by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities.

As a universal payment, which is not taxable and is not assessed as means for other secondary benefits, child benefit can be more effective than qualified child increases as a child income support mechanism when account is taken of incentive issues.

The Government have invested substantial resources in the child benefit scheme since entering office. Since 1997, expenditure on child benefit has increased from €505.8 million to an estimated €2.05 billion in 2006.

The broad approach over the last ten years in relation to child income support policy was recently commended by the NESC. However the NESC has also raised the question of a new instrument which would target low income families across the welfare-work divide. In this context, the Council was asked to examine the feasibility of merging the family income supplement scheme and child dependant allowance into a second tier child income support. Such a payment would be aimed specifically at targeting child poverty by channelling resources to low-income families without creating significant disincentives to employment.

The final report has not been published to date by NESC. However, while waiting for the structure for the new second tier support to be finalised, a range of other reforms, increased welfare supports and expanded child-centred services are all combining to make significant progress in tackling child poverty. The most recent figures show that at least 100,000 children have been lifted out of deprivation and hardship inside the last decade as a result of targeted measures and supports.

These include, in addition to the substantial increases in each Budget in Child Benefit rates which directly benefit over one million children, increases of from €21 to €282 a week for families on Family Income Supplement which is being claimed by over 21,400 families; the €40 per child increase in the Back to School Clothing and Footwear Allowance which benefits some 85,000 families and the €1,000 a year Early Childcare Supplement which benefits over 390,000 children, a third of whom are the children of lone parents.

The cost of increasing all qualified child increases to the highest rate is estimated to be some €50 million, while the cost of increasing all CDAs to one third of the lowest adult social welfare rate would be some €573 million in a full year.

Any change to existing policy, including qualified child increases, will be considered in a budgetary context and in the context of an overall review of targeted child income supports.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Question 129: To ask the Minister for Social and Family Affairs if he will report on progress which has been made in ending child poverty one year after the End Child Poverty Coalition Campaign called for serious action in this area. [37665/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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The National Action Plan against poverty and social exclusion details actions across several Government Departments to co-ordinate action across a range of Government services, including income support. The most recent reforms aimed at tackling child poverty include the following: payment of the new €1,000 a year early childcare supplement for all children under 6 years; increases in social welfare payments in real terms and improvements in entitlements; the creation of additional childcare places; and proposed reforms of the schemes for lone parents, and the qualified adults of social welfare beneficiaries, which will be of significant benefit also to their child dependants.

The most significant measure my own Department has taken in recent years to support families with children has been the very substantial real increases in child benefit rates. Between 1997 and 2006, the rate of child benefit rose from €38.09 per month for the first two children and €49.52 for each child thereafter to €150.00 per month for each of the first two children and to €185.00 per month for the third and each subsequent child. Child benefit is paid to over half a million families in respect of approximately 1.1 million children at a cost in 2006 of more than €2 billion. The provision of these increases has been part of the sustained and substantial overall increase in social protection expenditure provided for by this Government.

I held a Pre-Budget Forum in October which was attended by over 30 representative organizations, including several members of the End Child Poverty Coalition. At the forum, organisations presented their key priorities for consideration in advance of Budget 2007. I would like to put on record my appreciation and my thanks to the members of the End Child Poverty Coalition for their contribution to the forum and the valuable work which they and other similar organisations do in representing the interests of the more vulnerable groups in our society. The proposals put forward by these organizations are being considered in the context of the forthcoming Budget.

As I mentioned at the Pre-Budget Forum, I am committed to maintaining the momentum on reforms that directly tackle child poverty, which should have no place in modern, progressive 21st century Ireland. Preparation of a new National Action Plan for Inclusion is currently being coordinated by the Office for Social Inclusion in my Department for launch early in the New Year. Building on the social inclusion provisions in the partnership agreement, Towards 2016, the Plan will adopt a lifecycle approach by assessing the risks which individuals face at each stage of the life cycle and the supports they need to effectively meet these risks. The groups focused on using this approach are Children, People of Working Age, Older People and People with Disabilities. This strategic framework is also being designed to create more coherent and integrated structures that will greatly assist in achieving more effective implementation of the plan. It is also expected to facilitate better and more effective reporting and monitoring across the spectrum of government activity in the area of social inclusion.

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