Cuts will 'increase child poverty'

Cuts in child benefit would increase child poverty which had been reduced in recent years, children’s charity Barnardos warned this morning.

Launching its ‘Yes/No’ campaign against child poverty ahead of next month's budget, Barnardos chief executive Fergus Finlay said he wanted to ensure child benefit was not cut for people on lower incomes.

He said he also wanted to see a universal element of child benefit retained.

He was responding to an indication by Minister for Social and Family Affairs Mary Hanafin last night that three different rates of child benefit payments may be introduced in next month's budget.

Taoiseach Brian Cowen also told the Dáil this afternoon that child benefit cost the State €2.5 billion per year. He said no area could be immune to cuts in the budget. Mr Cowen said the exchequer had limited resources. "You have to use those resources in the best way possible," he said.

Mr Finlay said he did not oppose lowering child benefit for those on higher incomes. There was a case for a higher level of child benefit for those on lower incomes "and perhaps that means a lower level of child benefit for those on higher income levels," he said.

The most vulnerable must be protected if there are cuts. "For example, there are some recipients of child benefit at the moment who probably don't need it," he said.

While the easiest proposal was to cut the payment, this would have a hugely disproportionate affect on those who needed it, he said.

Increases in child benefit have been key to reducing child poverty in recent years, a new report carried out for Barnardos by independent researcher Brian Harvey found. It revealed that 90 per cent of the basic minimum costs of a raising a child are met by the payment, compared with just a sixth of this cost in 1992.

The report attributes much of the reduction in consistent child poverty (which halved between 2003 and 2007) to increases in child benefit.

However this real reduction in child poverty is threatened by proposed changes to child benefit in the McCarthy report, Mr Harvey warned.

If the payment was reduced from €38.31 per week to €31.28 per week as suggested in the McCarthy, it would fall over 25 per cent short from meeting the very basic needs of children, the report finds. The basic minimum cost of bringing up a child has increased from €28.60 a week in 1992 to €43.29 in 2009, the report found.

Barnardos urged the Government not to cut child benefit rates for families already receiving extra income supports the (Qualified Child Increase and Family Income Supplement).

In an appeal on other social welfare measures it is urging the Government not to cut basic social welfare and one parent family payments or rent supplement. It also wants the social welfare Christmas bonus to be reinstated for families with children.