CHILD BENEFIT: The Government's commitment to increase child benefit by around €400 million in this year's Budget may not be met fully, the Minister for Social and Family Affairs has said.
Ms Coughlan said she would have to negotiate on the rate of increase in the monthly payment with the Minister for Finance, Mr McCreevy, in advance of this year's Budget.
The Government had committed itself to a three-year phased increase in child benefit, which is paid to families regardless of their incomes, with the final instalment due in this year's Budget.
In his Budget speech in December 2000, Mr McCreevy announced the first step in a three-year programme to significantly increase the payments from that year's lower rate of €53.96.
This would have seen the lower rate for first and second children increased by €31 to €148.56 in next month's Budget, and the higher rate for third and subsequent children by €38 to €185.38.
However, Ms Coughlan has indicated that the increase may instead have to be spread over two budgets.
Currently, parents claiming child benefit receive €117.60 for the first and second child and €147.30 for third and subsequent children.
The Minister said she was "not sure" whether the three-year target would be met. "In the Programme for Government we have indicated that we would have a third tranche. It is unlikely that it will be in one go. We may have to do it over two years. I'm not sure, we will have to negotiate," she said.
Ms Coughlan said Mr McCreevy was very supportive of her Department and she was hopeful she would get a "relatively good package, but not that I will get the package that would be expected".
She said her Budget priorities would be to secure increases in basic social welfare payments and benefits to the elderly, as well as making progress in tackling child poverty.
Child benefit is paid for about one million children, so the monthly increase of between €31 and €38 would work out at around €400,000 over a 12-month period.
Phasing in child benefit increases or cutting back on increases over two years would free up the Minister to make increases in basic weekly payments for groups such as the unemployed.