Tony Gregory (Dublin Central, Independent)
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Question 128: To ask the Minister for Social and Family Affairs the reason a new regulation S.I. No. 859 of 2007 has been enacted resulting in parents retaining income from child benefit and early childhood supplement for six months after their child has been placed with foster parents; if the payments should transfer immediately to the foster parents to directly benefit the child; if she will review same as a matter of urgency; and if she will make a statement on the matter. [19027/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Child benefit is a monthly payment, paid in respect of children up to the age of 16 years. It continues to be paid in respect of children up to and including 18 years where they are in full-time education, or where they have a physical or mental disability.

Prior to April of this year child benefit continued to be paid to the birth parent where a child was placed in foster care, regardless of the duration of foster care or the level of support provided by the birth parent. This arrangement was based on a legislative provision which deemed that the child should be regarded as normally residing with the mother, even where the child had been placed with foster parents.

New arrangements have now been put in place whereby child benefit transfers to a foster parent after a period of six months of foster care. The rationale behind this change is that the purpose of child benefit is to assist toward the ongoing cost of child rearing. However, when introducing the change, it was considered inappropriate to withdraw payment from a parent in respect of short periods of foster care, such as during a period of recuperation from illness in the case of a parent without family or other supports. Furthermore, it is recognised that the immediate withdrawal of child benefit may have an adverse financial effect on the mother who may, regardless of the duration of the foster care, maintain some level of contact with the child.

Following discussions with the Health Service Executive and the Irish Foster Care Association, it was established that the HSE initially consider the vast majority of foster care arrangements to be short-term placements. In view of this and in light of the fact that legislating for all possible scenarios would be impractical, it was decided that six months represents a reasonable 'lead-in' time before the transfer of child benefit. The foster parent is subsequently entitled to child benefit from the seventh month of foster care.

The early childcare supplement, which is administered by the Department on behalf of the Office of the Minister for Children and paid in respect of children under six years of age, also transfers to the foster parent. As it is paid quarterly in arrears, it is issued to the person who was entitled to CB for the majority of the preceding quarter. Foster parents also receive an allowance from the Health Service Executive of €319 per week in respect of each child under 12 years of age and €346 per week in respect of children 12 years of age and over. In addition, a medical card is issued in respect of the child. I believe that these arrangements present the most equitable method of administering payment of child benefit in what can be very difficult circumstances for the families concerned.