Michael D Higgins (Galway West, Labour)
Link to this: Individually | In context

Question 113: 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 way this compares with the cost in 2005 and 2006 and the original estimate of his Department; and if he will make a statement on the matter. [32209/07]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

In line with EU Regulation 1408/71, workers with families are entitled to family benefits such as Child Benefit (CB) and Early Childhood Supplement, even if the children are resident in the workers home country.

In advance of the opening up of the labour market 2004 to workers from the EU accession states it was not possible to estimate the rate at which people would take up employment here and the impact that would have on the number of claims for family benefits. Indeed, in the years since accession, the number of claims being received on a monthly basis has fluctuated from a high level of over 400 per week to 150 in the last four weeks. Furthermore, it is not yet clear how long workers remain in this country having taken up employment, a factor which impacts on the estimated cost of the scheme.

My Department has been developing its claim processing procedures and appropriate control activities in respect of family benefit claims from non-Irish applicants. These procedures are being developed in the light of experience processing claims in recent years and it is expected that over time a clearer picture will emerge of the work patterns and residency of non-Irish nationals which will facilitate more accurate estimation of future claim levels.

Child Benefit paid for non-resident children in 2005 was €1.6m and in 2006 amounted to €2.9m. The Early Childcare Supplement commenced in April 2006 and amounted to just under €400,000. The 2007 estimate for child benefit is €4.2m and €570,000 for the Early Childcare Supplement.

In view of the uncertainties regarding the likely number of applicants and the duration of their claim, it is not possible at this stage to give precise estimates of costs for 2008.