Joan Burton (Dublin West, Labour)
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Question 178: To ask the Minister for Social and Family Affairs her views on what the main policy interventions by Government were which were responsible for the significant reduction in consistent child poverty as reported in the European Union survey on income and living conditions 2007 published on 10 December 2007 from 100,000 in 2006 to 75,000 in 2007. [45405/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Combating poverty and building an inclusive society are key priorities for the Government. The overall goal of the National Action Plan for Social Inclusion (NAPinclusion), is to reduce the number of those experiencing consistent poverty, including children, to between 2% and 4 % by 2012, with the aim of eliminating consistent poverty by 2016.

The latest poverty statistics released last week by the CSO in its annual EU-Survey on Income and living conditions showed that the overall consistent poverty rate reduced from 6.5% in 2006 to 5.1% in 2007. The rate of consistent poverty in the case of children aged 0-17 reduced from 10.3% in 2006 to 7.4% in 2007. A high proportion of children in poverty live in lone parent households. There was a significant reduction in consistent poverty rates for lone parents in 2007 from 33.9% to 20.1%. The results also revealed that the average disposable income in respect of children increased by 16.2% between 2006 and 2007.

The survey covers the period during which the provisions of Budget 2007, which introduced a range of measures costing over €240 million aimed at alleviating child poverty, came into effect. These measures clearly had a major impact on the outcomes achieved in relation to the reduction in child poverty. They included:

Combining the three rates of Child Dependant Allowance payments into a new single high rate Qualified Child Allowance of €22 per week.

Increasing the rate of Child Benefit by €10 per week to bring the rates of payment to €160 for the first and second child and €195 for the third and subsequent child.

Increasing the Back to School Clothing and Footwear Allowance by €60 for children aged 2 to 11, and by €95 for children aged 12 to 22, to bring the rates of payment to €180 and €285 respectively.

Providing additional funding of €3 million to extend the School Meals Programme.

Other budgetary measures, which came into effect during 2007, such as the €20 per week increase in the lowest social welfare rate to €185.80 and increases in the earnings thresholds for One Parent Family Payment and Family Income Supplement, also indirectly benefited children living in poorer households. This package of measures was in addition to initiatives such as the €1,000 a year early childcare supplement, which was introduced in 2006.

One of the most effective routes out of poverty for people in the active age groups, many of whom are parents, is through paid employment. People with families who are in lower paid employment are eligible to receive the family income supplement which increases household income while enabling recipients remain in, or take up, employment. Currently the weekly average payment for a one child family on FIS is approximately €99. Child benefit, which has been increased substantially in recent years, also facilitates employment take up, as a significant portion of child-related income is paid to people returning to work or already in employment.

Employment participation is further facilitated and incentivised by a range of education and employment supports made available by the Department of Social and Family Affairs to people in receipt of welfare payments, particularly the long-term unemployed, lone parents, and sickness related welfare recipients. These include the Back to Education and Back to Work Allowance Schemes.

The Activation and Family Support Programme and the Second Chance Education Opportunities Scheme offer supports to social welfare customers and others to help them to improve their employability and personal and family situations.

In spite of the current economic difficulties, the Government is determined to maintain the significant progress being made in reducing child poverty, especially through improved income support for children and their families and through removing obstacles to and providing incentives for employment take up. The recent budget provided for a range of measures costing over €56 million to benefit children and families. These include an increase of €2 in the qualified child increase payable with social welfare payments, bringing the rate up to €26 per week from January 2009; an increase of €10 per week per child in all family income supplement income thresholds, giving an increase of up to €6 per child per week from January 2009; and an increase of €50 per week in the income threshold for the back to school clothing and footwear scheme to enable more families qualify. These increases will mean that the high level goal of maintaining the combined value of child income support measures at 33% to 35% of the minimum adult social welfare payment rate will continue to be met next year (These range between 33.4% and 43.7%).

In framing budget 2009, the Government has prioritised delivering real increases in social welfare payments to ensure that, in line with the NAPinclusion, the most vulnerable groups in our society are protected. Increases of between 3% and 3.8% in the basic payment rates have been provided for next year, ahead of the projected rate of inflation for 2009 of 2.5%.

The significant reduction in consistent poverty among children in 2007 show that the combination of policies being pursued is working. The Government's priority is to maintain that progress, and its determination to do so is demonstrated in the recent budget measures.