Jan O'Sullivan (Limerick East, Labour)
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Question 40: To ask the Minister for Social and Family Affairs the estimated increase in the cost of welfare claims in 2008 arising from the entitlement of EU migrant workers to the new childcare supplement and child benefit; the level of increase in applications for such benefits that has been evident since the beginning of 2007; his views on these increases; and if he will make a statement on the matter. [15204/07]

Séamus Brennan (Dublin South, Fianna Fail)
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EU migrant workers have an entitlement to Child Benefit and other "family benefits" including Early Childcare Supplement (ECS) under EU Regulation 1408/71. Where a national of an EU State with a family is working in Ireland, the worker is entitled to payment of such benefits, even if the children are resident in the worker's home country.

Applications for family benefits from EU migrant workers who come to live in Ireland with their families are dealt with under domestic legislation. Entitlement to Child Benefit is based on the applicant satisfying the habitual residence condition and the child being ordinarily resident in Ireland.

Currently there are over 38,000 EU nationals in receipt of Child Benefit for 67,500 children who are resident with them in Ireland. Of these recipients, some 17,400 are UK nationals, with a further 13,800 recipients from the ten States that joined the EU in 2004 and 2,500 families from Romania or Bulgaria.

EU nationals who come to work in Ireland but whose families remain in their home country may have an entitlement to family benefits in Ireland under EU Regulation 1408/71. Before payment of Child Benefit is made for non-resident children it is necessary to contact the authorities in the country of residence of the children to confirm details and establish what, if any, family benefits are payable there.

This process can take a number of months to complete and, as a result, the number of claims that have been finalised to date is relatively small. There are approximately 17,000 claims at various stages of processing and awaiting finalisation. The number of claims to Child Benefit and potentially Early Child Supplement in respect of non-resident children of EU nationals has, since the start of 2006, averaged close to 300 per week. However, over the past 4 weeks, the figure dropped to around 200 per week.

Child Benefit is in payment under EU regulations to 721 families, in respect of 1,663 children resident outside of the Republic of Ireland. Some 87% of these children are resident in the UK.

The total child benefit expenditure for EU migrants with non-resident children in respect of 2007 is estimated at €85m or 3.9% of overall child benefit expenditure.

The total cost in 2008 is difficult to estimate but on current trends, the potential accrued cost could be of the order of €130m.

The corresponding figures for early childcare supplement are €17m in respect of 2007 and €30m in respect of 2008.