Ireland Government plan on child poverty in difficulty

from the Irish Times

Child benefit payments have run into a snag in Ireland. The government would like to set up a tier system based on need but it will be difficult. - Kale

by CARL O'BRIEN,

GOVERNMENT ATTEMPTS to tackle child poverty by identifying families who are most at risk of deprivation have run into major difficulties.

Officials have spent several years trying to plan a new child benefit payment which would be targeted at low-income families and those reliant on social welfare. However, briefing material prepared for Minister for Social and Family Affairs Mary Hanafin shows progress on the issue appears to have stalled due to difficulties in identifying families who are most at risk of poverty.

The documents were obtained by The Irish Times under the Freedom of Information Act.

The Government pledged to introduce such a "second tier" child benefit payment in the programme for government and in the latest partnership agreement.

Latest figures indicate that more than one in 10 children are consistently living in poverty and deprived of essentials such as proper winter clothing.

One potential solution under discussion by senior officials at the Department of Social and Family Affairs involves merging two existing welfare benefits, the child dependent allowance - which is paid to families dependent on welfare - and the family income supplement - which is paid to low-income families where a parent is working. However, officials warned that such a step could pose major administrative problems.

"These two payments are currently made to two distinct and different groups, namely social welfare dependent families and working, low-earning employees with families," the briefing paper says.

"For this reason, amalgamating the two payments is extremely complex and would involve the extension of income testing to a much wider section of families than currently applies."

The briefing papers also acknowledge that the Government think tank, the National Economic and Social Council (NESC), was unable to establish a consensus on a suitable way forward.

Another option examined by officials was to dramatically increase the uptake of the Family Income Supplement from its current level of about 40 per cent to about 100 per cent. This would reduce child poverty by an estimated 3 per cent.

This option, according to officials, was worthy of examination as it would not involve dismantling the current system of child income support measures.

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