Jan O'Sullivan (Limerick East, Labour)
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Question 162: To ask the Minister for Social and Family Affairs her intentions to increase child specific welfare payments to reflect the higher cost to low income families of raising teenagers. [39556/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Among the main objectives of the Department's child income support policies is the alleviation of poverty among families with children and the facilitation and encouragement of employment by parents, as it is recognised that employment by a parent is the best route out of poverty. The main policy instruments used for achieving these objectives are child benefit, increases in weekly social welfare payments for qualified children (IQCs), family income supplement (FIS) and the back to school clothing and footwear allowance.

The recent Budget provides for a range of measures costing over €56 million to benefit children and families. These measures include an increase of €2 (8.3%) in the IQCs, bringing them up to €26 per week from January 2009. In addition, all FIS income thresholds are being increased by €10 per week per child, giving increases ranging between €6 for a one child family to €48 per week for a family with eight or more children from January 2009 (the current average weekly FIS payment is almost €99). The income threshold for the back to school clothing and footwear scheme is being increased by €50 per week from €100 to €150 to allow more families to qualify.

Significant progress has been achieved over the past decade in reducing poverty among children. For instance, the rates of child benefit 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 it has been necessary for the Government to take a number of steps to reduce overall public expenditure in order to restore order and stability in the public finances.

In this regard, it has been decided that Child Benefit, which is paid regardless of means, will no longer be paid in respect of those who are 18 years old. At that stage, they are effectively treated as adults in most respects. This change will be phased in gradually. A half payment will be made in respect of existing and future qualifying children from January 2009 and from January 2010 the payment will cease from the 18 birthday.

However, it is recognised that any changes in child benefit entitlements may have implications for family budgets. Accordingly, in order to protect the more vulnerable in society, special alleviating measures are being introduced for those in low income and social welfare dependent households. A compensatory payment of €15 is being provided during 2009 and 2010 for any week during which those affected by this measure are receiving a social welfare payment which includes an increase in respect of the 18 year old child or a family income supplement payment which includes payment in respect of that child. In addition, households affected by the measure who also qualify for the back to school clothing and footwear allowance will receive an extra payment of €215, bringing the total payment in respect of such a child to €520. These transitional measures will cease in January 2011.