Strong criticism over child allowance increases

Child poverty The Budget has done nothing to address child poverty, groups working to end disadvantage among families and children claimed last night.

There was strong criticism of the fact that the Budget contained no increase in Child Dependent Allowance (CDA), a payment made to the poorest children in State which has not increased since 1994.

There was also criticism at the fact there was no increase in the Back to School Clothing and Footwear Allowance.

The Children's Rights Alliance described the increase in Child Benefit as "derisory" and "a long way short" of any meaningful moves to tackle child poverty.

Child Benefit is to increase by €6 per month for the first and second child, and by €8 per month for each of the third and subsequent children, to €131.60 and €165.30 respectively.

The Government-appointed Combat Poverty Agency described this increase as "disappointing". It said it left a huge amount to be done in Budget 2005 in order to meet the Government target of €149 per child per month by 2005.

Some 300,000 children are estimated to live in relative poverty in Ireland, with 70,000 children living in consistent poverty - i.e. in homes unable to provide them with a hot meal a day or a warm winter coat, according to Government figures.

Ms Frances Byrne, manager of the One Parent Exchange Network (OPEN), said the Budget made a mockery of the Programme for Government's assertion that the elimination of child poverty would be a "core element of our work".

The Society of St Vincent de Paul said it was "shocked" at a Budget which "ignores child poverty".

The Minister for Social and Family Affairs, Ms Coughlan said she disagreed with the charges. She said to increase CDA would create poverty traps and discourage parents from getting themselves off welfare.

Going against advice from the Government-appointed National Economic and Social Council that CDA is a more effective means of targeting children in poverty, she said Child Benefit was "the best way forward".

"And €6 and €8 per month on the baseline that is there is quite substantial. Child Benefit is already costing over €1 billion a year to my Department. That in my opinion is a commitment."

While appreciating that the increases left the Government even further behind achieving its targets on Child Benefit than it had been left by last year's Budget, Ms Coughlan said she had "only a certain amount of money". She said the €10 per week increase across the board in other social welfare payments would also benefit children in poverty and that this too "was the way forward".

The non increase in the Back to School Clothing and Footwear Allowance would mean a cut in real terms in this payment of 2.5 per cent, according to the Society of St Vincent de Paul. This once-off annual payment is currently €80 for under 12s and €150 for the over 12s.

There was broad welcome however for the raising of the income threshold for Family Income Supplement (FIS) by €28 per week which will benefit all families on FIS.