Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Question 133: To ask the Minister for Social and Family Affairs when additional payments to compensate social welfare dependent families for cuts in child benefit will become available; and if she will make a statement on the matter. [9686/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

Between 2000 and 2009, overall expenditure on Child Benefit grew from just €638 million to approximately €2.5 billion per year. However, with tax revenues having fallen dramatically, we cannot afford to maintain spending at this level.

The Government is conscious that the payment can be an important source of income for all families and so decided against withdrawing Child Benefit completely from any family and that it was fairer to reduce the Child Benefit rates across the board, while fully protecting up to 420,000 children in families who are dependent on social welfare or in low income employment.

Families with children who are dependent on social welfare will be fully compensated for the reduction by getting from January 2010 an extra €3.80 per child per week in the value of the Qualified Child Increase paid with the principal payment. Families, who currently receive a half-rate Qualified Child Increase, because they have other household income and so are not totally dependent on welfare, will receive from January 2010 an extra €1.90 per child per week.

The Family Income Supplement income thresholds have also been increased from January 2010 in order to compensate low-income working families for the cuts in Child Benefit.