Homes rely on welfare for 67% of childrearing costs

Some households rely on child welfare payments for up to 67% of the cost of rearing a child, according to a new research.

The study, The Cost of a Child, conducted by the Vincentian Partnership for Social Justice (VPSJ) reveals how highly dependent some parents and guardians have become on such income.

It highlights how social welfare payments for the benefit of children contribute between 11% and 67% towards the total cost of providing for a child.

The report finds that expenditure on children fluctuates because of their different needs based on age, location, parental employment status, and childcare.

Child-rearing costs are high in infancy, before falling at pre-school age and gradually rising as children grow older.

It estimates that children at second level have the highest weekly costs — €144.92 for urban families and €140.20 for rural families — because of their increased need for food, education, communications, and social inclusion and participation.

In contrast, pre-school children have the least cost of any age group — €48.20 for urban households and €50.03 for their rural equivalent.

However, if childcare costs are added, infants emerged as the costliest category of child with average weekly costs running at €291.13 for urban families and €260.31 for rural families. In the same scenario, children of primary-school age cost the least — €130.30 for urban households and €134.72 for rural households.

The figures exclude the cost of items shared in common with other family members such as heating or the use of a car.

The report claims child benefit payments contribute to 67% of the cost for a primary-school child in an urban household where there are no childcare costs. However, they fall to just 11% of the cost of an infant who needs childcare in an urban household.

VPSJ director Bernadette McMahon said current child benefit levels and other social welfare rates were arbitrarily set by government officials and policymakers “without any sense of what it costs to raise a child”.

She pointed out that child benefit and other social welfare payments such as the back to school clothing and footwear allowance remained static despite the fact that costs generally increased as children grew older.

The VPSJ called on the Government to consider introducing different levels of payments at different stages of childhood as a result of the report’s findings.