Paul Kehoe (Wexford, Fine Gael)
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Question 125: To ask the Minister for Social and Family Affairs if she will report on the welfare reforms for child income supports that were outlined in the programme for Government; and if she will make a statement on the matter. [39427/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Programme for Government 2007-2012 commits to:

Amalgamating increases for qualified children (IQCs) and family income supplement (FIS) in order to develop a second tier of income support targeted at the poorest families;

Continuing to increase child benefit; and

Implementing significant improvements to the back to school clothing and footwear allowance and school meals programme.

The National Economic and Social Council was asked to examine the feasibility of merging IQCs and FIS with a view to creating a single second tier child income support. Dr. John Sweeney was commissioned by NESC to examine the issues and develop proposals for a second tier child income support scheme. NESC did not reach agreement on his report which was subsequently published as a research paper.

His research paper on this issue was received towards the end of 2007 and its main proposal was the abolition of the current FIS and IQC payments and the introduction of a means-based, employment-neutral child income support payment. However, his proposals raise a number of significant issues which require further detailed examination by the Department of Social and Family Affairs and other agencies.

The Economic and Social Research Institute has also undertaken recent research in this area and concluded, inter alia, that full take-up of FIS would reduce child income poverty by 3%.

Arising from this research, the Department undertook to determine the current level of take up of FIS among qualifying families and to ascertain the reasons underlying the failure to avail of this payment, where applicable; and carry out an analysis of the existing FIS customer base. This research is now nearing completion.

In considering the future direction of child income support policy, it is important to keep in mind the multiple objectives behind the provision of such support and the research undertaken by Dr. Sweeney, the ESRI and the Department will inform future policy developments in this area.

In relation to child benefit, the rates of payment have been increased by between 185% and 200% in the period from 2001 to 2008, while total expenditure on the scheme has increased by almost 300% during the same period. In the context of the current economic circumstances, Budget 2009 does not provide for an increase in the rates of child benefit.