Lone-parent welfare benefits in Ireland are too high, and do too little to improve the wellbeing of children, according to the Organisation for Economic Cooperation and Development (OECD).

A new report by the OECD says that that Ireland, along with a number of other countries, was spending large amounts on payments to single parents last until children are well into their teens, according to The Irish Times.

“There is little or no evidence that these benefits positively influence child wellbeing, while they discourage single-parent employment,” the study notes, referring to Ireland, as well as the UK and New Zealand.

It suggests phasing out the payments out when children reach compulsory schooling age and that parents be directed towards work or education. Any savings should be used instead to improve family income or improve pre-compulsory education, it argues.

According to the report, countries such as Norway have increased employment and earnings among single parents and reduced child poverty through such reforms.

The Government has been examining similar proposals for several years, but there has been little sign to date that it is ready to embark on such a move. Overall, the report, entitled Doing Better for Children, says Ireland fares moderately in terms of child wellbeing. But it ranks below average on factors such as family income and health.

However, the report shows that Ireland has the third highest suicide rate among young people aged 15 to 19, as well as above average rates of smoking and drinking.

In educational achievement for 15-year-olds – based on reading, science and maths – Ireland ranks towards the upper end of the table (10th highest).

Compared with Scandinavian countries such as Finland and Norway, the OECD said Ireland, the Netherlands and the United States spent relatively little public money on children.

The report says governments should focus more on investing in the first six years of children’s lives to reduce social inequality and help all children, especially the most vulnerable, have happier lives.

Ireland, along with most OECD countries, spends more public money on children in the later stages of childhood through investment in compulsory primary and secondary-level education.

This, the report says, goes against theory and evidence on child wellbeing and development.

OECD secretary-general Angel Gurría warned that while the economic downturn was putting pressure on public budgets across the world, any short-term savings on children’s education and health would have long-term costs for society.

“Governments should instead seize this opportunity to get better value from their investment in children. And spending early, when the foundations for a child’s future are laid, is key, especially for disadvantaged children, and can help them break out of a family cycle of poverty and social exclusion,” the secretary general said.