Big rise in child benefit costs

Social welfare: Government spending on child benefit and the childcare supplement is due to increase significantly next year due to a greater numbers of eligible children.

Specific increases in welfare benefits will not be announced until Budget Day. However, even if the Government is to maintain its existing level of spending on welfare benefits, total expenditure will be in the region of €9 billion.

Due to demographic changes, the cost of paying out child benefit to all under-18s in the State will rise by 8 per cent to almost €2.5 billion. The cost of the €1,000 childcare supplement, which is payable to all children under five years of age, will also increase by 13 per cent to €460 million.

The lack of European funds available for use in developing childcare facilities is also reflected in the increase of public money being spent on the Government's childcare investment programme.

The cost of the programme is due to rise from almost €30 million last year to €150 million in 2008. The EU-funded equal opportunities childcare programme, which will end this year, provided for €113 million during 2007.

No significant funds have been allocated in the spending plans for the Office of the Minister of State for Children on a planned constitutional referendum on children's rights. This money may be provided at a later stage if the Cabinet formally agrees to hold a referendum next year.

The Department of Social and Family Affairs spending plans, meanwhile, contain significant spending reductions in consultancy services (down 22 per cent) and value for money policy reviews (down 45 per cent).

© 2007 The Irish Times

This article appears in the print edition of the Irish Times