Dáil debates

Tuesday, 24 September 2024

Ceisteanna Eile - Other Questions

Social Welfare Benefits

8:25 pm

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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18. To ask the Minister for Employment Affairs and Social Protection if she will increase the child benefit payment to assist families; and if she will make a statement on the matter. [37624/24]

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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My question relates to the rate of child benefit payment per child and whether there is an opportunity to have it increased to support families who are under pressure. When the payment was first introduced, it was a useful step in tackling child poverty. Can the rate of child benefit be increased in the forthcoming budget?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Child benefit is a monthly payment made to families with children up to the age of 16 years. The payment continues to be paid in respect of children until their 19th birthday where they are in full-time education or have a disability. The extension of child benefit to 18-year-olds was one of my key priorities in budget 2024 and I am very pleased that we were able to bring that change in from May this year.

Child benefit is paid at €140 per month. Twins are paid at one and a half times the standard monthly rate for each child, that is, €210 per month for each twin. All other multiple births are paid at double the standard monthly rate for each child, that is, €280 per child. In budgets 2023 and 2024, I provided for a double month of child benefit to be paid in respect of each child. Families received these additional payments in December 2022 and December 2023. These additional payments followed a €100 lump sum, which was paid to parents in respect of each child in June 2023 as part of the package of measures provided for in spring 2023 to assist families with the cost of living. Child benefit is currently paid to approximately 677,000 families in respect of approximately 1.2 million children, with an estimated expenditure of €2.2 billion for 2024.

In addition to child benefit, families on low incomes may be able to avail of the increase for a qualified child with primary social welfare payments; the working family payment for low-paid employees with children; and the back-to-school clothing and footwear allowance. These schemes provide targeted assistance that is directly linked to household income and thereby support low-income families with children. Child benefit is kept under review in the context of the annual budget. I trust this brings some light to the matter.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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I acknowledge the huge step that was taken in allowing full-time students to hold on to child benefit. I had raised the issue with the Minister, as did many of my colleagues. It was a positive move that it was included in the budget.

The one-off payments are just that. They are not ongoing over the years. When child benefit was originally introduced in the 1940s, it had a huge impact on household income and child poverty, which was very much reflected in mortality rates. Some families are under pressure, many of whom do not qualify for other social welfare payments and therefore are not able to access such payments as the increase for a qualified child. An increase in the rate would be a support to them. It is a measure I ask the Minister to examine closely to see whether there is a possibility of supporting families in that situation.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank Deputy Moynihan and acknowledge the support he and others gave me in increasing the age to the 19th birthday. That made a big difference. It brought a lot of children in, including some who were still in secondary school and were able to get that support. It is a much-needed support. It is a universal payment. Some people say it should be universal, while others say there should be targeted measures. All I can say is that in all my days working, the children's allowance, which is now called child benefit, has been a very useful payment and has made a huge difference to a lot of mothers, to be honest. The rate is currently €140. We gave the double payment two years in a row and a lot of people told me it was nice to have the few bob in their pockets before Christmas because there are always an extra few bills that have to be paid. I keep all these matters under review and I will probably reveal more next week.

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail)
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I will focus on the particular group who do not qualify for the various social welfare payments such as child dependant payments. Child benefit is probably the only social welfare payment going into the house and it is a hugely significant part of the overall household budget. It has not been increased in many years from the €140 rate. If she were to make a change in that, the Minister would be supporting all these other families who do not qualify for social welfare. The various bodies that have examined the different budgets have identified that the people on the lower income deciles and those on the higher income deciles benefited, but the middle four deciles, who do not qualify for social welfare and pay for many things, are under pressure and are not gaining as others have. Will the Minister see whether there is a way to support those families with a key component of the household budget, the child benefit rate?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Deputy is correct that there is a cohort in the middle that does not have any other supports and the child benefit payment is important. Some people have said to me that people with high incomes get the same payment, but I have met a lot more people in the middle income bracket than millionaires over the years. It is an important payment. It is €140 with a double payment last year. That equates to slightly more than a €10 per month increase. These things have to be looked at in the context of the budget. I know the value of this payment for households. It makes a difference and means a lot.