Written answers

Tuesday, 24 November 2009

Department of Social and Family Affairs

Child Support

9:00 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 389: To ask the Minister for Social and Family Affairs if she will support a matter not to cut twins child benefit (details supplied). [43044/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Child benefit is a monthly payment made in respect of qualified children to assist in the costs associated with child rearing and in the alleviation of poverty in larger families. Currently the standard monthly rates of child benefit in respect of single births are €166.00 in respect of each of the first and second child and €203.00 for the third and subsequent children.

In addition, with regard to multiple births, parents of twins are paid child benefit at one and a half times the standard rate for each qualified child. Child benefit is paid in respect of multiple births of triplets or greater at double the normal monthly rate for each qualified child. Furthermore a special grant of €635.00 is paid in respect of multiple births at the birth and further grants of €635.00 when the children reach age 4 and 12 years. These higher payment rates of child benefit are in recognition of the additional costs associated with multiple births.

As you will be aware, the rates of Child Benefit have increased significantly since 2001, having trebled for the first two children and increased by over 185% for the third and subsequent children.

Partly as a result of this, and partly as a result of an increase in the number of eligible children, overall expenditure on Child Benefit grew from just u under €965 million in 2001 to nearly €2.5 billion in 2008.

The Government was able to direct substantial increases in financial support to all Irish families in recent years. However in view of the current economic crisis, the Government has had to take steps to reduce overall public expenditure and restore stability to the public finances. Excessive borrowing and an unsustainable increase in the national debt will hamper our ability to fund social services, including welfare, in the future. We must find an appropriate balance between protecting the most vulnerable people in the short term and taking necessary action to avoid prolonging our current economic difficulties.

It is in this context, that the Government is considering how savings might be made in Child Benefit. We are considering a range of options, including, but not limited to, those set out in the reports of the Commission on Taxation and the Special Group on Public Service Numbers and Expenditure Programmes.

The Government has not yet made a final decision on the future of Child Benefit payments including the level of payments in respect of twins/multiple births. I can assure the Deputy that in considering this issue, we are mindful of the needs of families that have come to rely on their Child Benefit income. Our final decision will be outlined on Budget day.

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