Migrant child payments may increase by €90m

The entitlement of EU migrant workers to child benefit and the new childcare supplement is likely to see the cost of welfare …

The entitlement of EU migrant workers to child benefit and the new childcare supplement is likely to see the cost of welfare claims rise by an extra €90 million next year, according to internal Government estimates.

There is now a backlog of claims for 17,600 non-resident children to be processed. A total of 80 per cent are from Polish nationals.

Under a 30-year-old EU law, employees from any member state can claim child benefit in the country they are working in on behalf of their non-resident children.

The number of applications for the payments has increased from 30-a-week last year to an average of 300-a-week, following publicity over migrant workers' entitlement to the new childcare supplement earlier this year.

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Based on current trends, officials at the Department of Social and Family Affairs estimate 15,000 claims for 25,000 non-resident children will be received in 2006.

A spokesman for Minister for Social Affairs Séamus Brennan pointed out the €90 million figure was a fraction of the overall expenditure on child benefit, which totals more than €2 billion. He said EU migrant workers were entitled to the benefits and were contributing significantly to the economy.

Irish emigrants in countries such as the UK have benefited from the EU law in the past, the spokesman added.

The payment of child benefit and childcare supplement became a hotly contested political issue earlier this year.

Fine Gael claimed the eligibility of EU migrant workers to the childcare supplement - worth €1,000 a year - had not been foreseen by the Government.

It projected migrants' entitlement to the supplement, along with the weekly child benefit payment, could cost the State around €150 million.

Significant delays in processing applications means the extra cost will not be felt fully until next year. Total child benefit expenditure for EU migrants with non-resident children is estimated to cost €36 million by the end of this year.

Before child benefit and the childcare supplement are paid, Irish authorities must confirm details with the authorities in the applicants' countries of origin.

Irish officials say it can take up to five months to receive replies to enquiry forms they send the Polish authorities.

This, together with the qualifying conditions for Polish child benefit - which is means-tested - is contributing to the delay, according to Irish officials.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent