Increase in child benefit 'inadequate'

Child benefitDespite increasing child benefit, the Minister for Finance, Mr Cowen, was last night accused of failing children and families by women's groups and trade unions.

Mr Cowen increased child benefit by €10 per month for the first and second child and €12 per month for the third and subsequent child, but this was described as inadequate by campaigners.

Mr Cowen said improvements were also on the way. "I will complete the transition to a higher rate of child benefit in next year's Budget.

"This Government has substantially increased the rates of child benefit. The monthly rate for the first and second child in 1997 was €38.09.

"In 2005 it will be €103.51 higher - an increase of more than 270 per cent," said Mr Cowen in his speech.

He also announced that additional funding would be provided to the family support agency.

He said this would support work in areas such as marriage and family counselling and an expansion of the family and resource centre, the money advice and budgeting service, the combat poverty agency.

Despite these measures, one of the Minister's firmest critics was the National Women's Council of Ireland.

"Budget 2005 has clearly failed children and parents by ignoring the childcare crisis in Ireland today," said Ms Therese Murphy, chairwoman of the group.

"The NWCI is bitterly disappointed that there has been no announcement in today's Budget to alleviate the high costs of childcare to parents," she said.

The organisation said it believed Budget 2005 to be one of half measures.

"Clearly there are welcome measures in relation to social welfare increases and removing minimum wage earners from the tax net.

"The roll back on the social welfare cuts introduced in Budget 2005 is also welcomed."

It also praised measures relating to rent supplement and emergency crèche payments.

However, its overall response was critical.

"On balance this budget is a missed opportunity in meeting the needs of women and children," said Ms Murphy.

SIPTU, the largest union in the State said the Government had failed to act on childcare and pensions.

"Despite strenuous representations by social parties and a wide variety of groups, the Minister has failed to introduce any form of tax relief or other assistance to working parents in respect of their childcare costs.

"These costs - which now average over €150 per week - are now driving many parents out of the workforce, some fathers as well as many mothers".

The national equality secretary of SIPTU, Ms Rosheen Callendar, said that removing recipients of minimum wage was not necessarily a long-term achievement.

"We must point out that when the minimum wage increases next May, as agreed, people on the minimum wage - who are mainly women and young people, will once more be dragged back into the tax net".