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Tuesday 10, November 2009

PRESS RELEASE - Child Benefit Key to Reducing Child Poverty

Dublin, 10 November 2009 - Barnardos today launched its Yes/ No campaign against child poverty. The children's charity presented newly revised figures on the cost of raising a child in Ireland in 2009, linking Government increases to Child Benefit over the years with the reduction of child poverty in the country between 1992 and 2009. Irish child poverty rates remain high by European standards (the sixth highest) but have dropped from the top of the table, with consistent poverty rates among children falling from 14.6% in 2003 to 7.4% in 2007.

Speaking at the launch, Fergus Finlay, Barnardos' CEO said: "When Barnardos presented at the Minister for Social and Family Affairs' Pre-Budget Forum in October we argued that a straight cut across the board to Child Benefit would be inequitable, unfair and disproportionate as the poor would suffer most. We urged the Government to exclude those on social welfare and in receipt of Family Income Supplement from any cuts to Child Benefit. We are pleased at indications that Minister Hanafin has listened but remain concerned that it will be an uphill battle to protect children living in poverty ahead of the Budget from Cabinet cuts."

"Barnardos is concerned that the 2007 child poverty figures have risen over the past two years as recession deepens and we urge Government not to become complacent about measures to reduce child poverty. The research launched today clearly indicates that Child Benefit has played a significant role in achieving these reductions and that a straight cut to the payment will disproportionately affect those children and families at risk of poverty. It is imperative that Budget 2010 does not make cuts to supports that will result in more children living in disadvantage and poverty or make life even harder for those already experiencing deprivation."

Independent Social Researcher, Brian Harvey, who carried out the research for Barnardos said: "We know from other European countries that reductions in poverty are achieved by the sustained effect of substantial social transfers over time. It follows that cut backs in supports to families and children living in disadvantage will undo the limited progress made in reducing child poverty over the past few years, particularly at a time when there are fewer jobs and more people are struggling to simply get by."

Barnardos is urging Government to ensure that measures introduced to close the gap in the public finances during the recession are both proportionate and fair.

Norah Gibbons, Barnardos' Director of Advocacy, said: "While cuts may close gaps in expenditure from a purely economic point of view, they will open the gap between what families with children need to survive and what they have in their pockets. Cuts to social welfare, education and health will hit the same children from all angles and impact on their lives in a very stark way. There are serious long-term implications in cutting welfare and services that could push more families into intergenerational cycles of poverty and deprivation continuing the cycle of inequality and exclusion in Irish society for generations to come."

Barnardos has recommended that Government do not cut Child Benefit for those families who receive the Qualified Child Increase and the Family Income Supplement. If, as Ministers have said, Child Benefit is cut these payments should be increased commensurately to ensure these families do not lose what little income they have to survive on.

Fergus Finlay concluded: "Government have used the rhetoric of sustainability and fairness in much of their discussion about the upcoming budget and the cuts that must be made. However, it is hard to see how any debate around the future of this country and sustainable ‘ways forward' can exclude those citizens who by definition embody the future of not only our country but our society. As a nation we have continuously failed look at ways of redressing the endemic inequality that excludes and marginalises too many children across Ireland."

"Even when we had the money to take a step back and examine the supports and services crucial to supporting childhood and children's futures, we did little to really address the deficiencies in our systems and move to improve them in the ways that matter. We wasted the opportunities provided by our economic success. It is unconscionable that having failed those children with the very least of everything - educational opportunity, material goods and adequate healthcare - we should now ask them to bear the burden of recession for us with deepening poverty, deprivation and social exclusion."

Barnardos is asking people to support its campaign to protect vulnerable children in Budget 2010 by signing its online petition at www.barnardos.ie/YesNo.

ENDS
For further information contact:
Irene Lawlor, Press Office, 086 398 0441/ 01 708 0423
Catherine Joyce, Advocacy Manager, 086 343 2542

COST OF RAISING CHILDREN IN IRELAND 2009

The two measurements used in assessing the cost of raising a child are the Basic Minimum Standard necessary and the Modest but Adequate Standard. Both show that the largest cost for families with children is food, followed by clothes and personal care. In the Modest but Adequate Standard the diet for children is significantly improved through variety and the standard allows for outings, holidays in Ireland, pocket money, baby-sitting and pre-school. Pre-school costs have increased significantly since 1992 and are now among the highest in Europe at 45% of the average wage

Basic minimum standard	1992	2009
* Age 0-6	€26.28	€39.70
* Age 7-12	€36.18	€54.65
* Age 13-18	€47.48	€71.72
Modest but adequate	1992	2009
* Age 0-6	€34.79	€52.55
* Age 7-12	€46.60	€70.40
* Age 13-18	€61.32	€92.63

Child Benefit
- From 1990s, Child Benefit was government instrument of choice in reducing child poverty;
- Child Benefit levels moved substantially ahead of the Child Dependent Allowance (now the Qualified Child Increase) which was frozen from 1996 to 2006 (at €16.80 weekly) and only began to modestly increase in the last few years;
- Child Benefit rose from €4.63 weekly to €38.31 weekly (€166 monthly), significantly closing the gap of costs;
- For a child 0-6, Basic Minimum Standard:

	Cost of a child	Child Benefit
* 1992	€26.28	€4.63
* 2009	€39.70	€38.31

Child Poverty
- In 1992, Ireland had one of highest rates of child poverty in Europe;
- Since 1992, one fifth of children taken out of child poverty (relative poverty);
- Consistent poverty rates also fell from 14.6% in 2003 to 7.4% in 2007(figures not available prior to 2003);
- At least 4.2% of this attributed to Child Benefit (ESRI);
- Ireland still 6th highest child poverty rate.

Reducing Child Benefit, without commensurate support for those on social welfare or low incomes would:
- Reverse gains in reducing child poverty
- Discarding instrument of proven value
- Introduce hardship gap in what are already austere budgets

BARNARDOS YES/ NO CAMPAIGN RECOMMENDATIONS

Social Welfare

- Protect the poorest children from proposed change to Child Benefit by insuring that the rate of payment to families in receipt of Qualified Child Increase and Family Income Supplement remains unchanged. In the event of a decrease in Child Benefit increase the QCI and FIS payments relative to the cut in Child Benefit;

- Leave the basic adult social welfare payment at its current rate to support children living in poor families;

- Ensure that the Family Income Supplement responds flexibly to changing working hours in recognition of the difficulty many families face from reduced working hours and income;

- Reinstate the Christmas Bonus for families with children;

- Leave the Back to School Clothing and Footwear Allowance at its current rate and include eligibility to the scheme to all those earning up to FIS levels of income;

- Maintain the current rate of payment for the One-Parent Family Payment;

- Do not make any further cuts to Rent Supplement until an impact assessment is carried out into the affects of existing cuts.

Education

- Roll out a compulsory national book rental scheme in all schools across the State.

- Reinstate 2008 staffing levels to ensure class sizes are on the way to achieving the levels set out in the original Programme for Government once the current recession begins to lift;

- Ensure that all children who have a demonstrated need for a Special Needs Assistant access this service in a timely way;

- Ensures NEPS has funding to provide adequate psychologist coverage to all schools, ensuring resources are used efficiently.

Health

- Retain current medical card income guidelines and disregards, and allow those who find work to keep their medical card for two years;

- Refrain from imposing a €5 charge for prescriptions for medical card holders and exempt those on the Long Term Illness Scheme on up to FIS income levels from this co-payment;

- Leave the monthly Drug Payment Scheme threshold at €100, do not administer this payment quarterly;

- Ensure that the promised Child and Adolescent Mental Health Teams are delivered, these teams provide essential services for young people.

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