Willie O'Dea
Question:463. Deputy Willie O'Dea asked the Minister for Social Protection her plans for the future of child benefit; her plans to tax it or means test same; and if she will make a statement on the matter. [47487/12]
View answerTuesday, 6 November 2012
Questions (463)
Written answers
Child benefit is a universal payment that assists parents with the cost of raising children and it contributes towards alleviating child poverty. The estimated expenditure on child benefit for 2012 is around €2 billion in respect of some 1.15 million children.
The Government is conscious that child benefit, as a universal payment, can be an important source of income for all families, especially during a time of recession and high unemployment. The social protection system also provides assistance to low income families with children through the payment of qualified child increases on primary social welfare payments and through the family income supplement payment. Both of these provide a level of assistance which is directly or indirectly linked with a household’s income situation.
I am conscious that achieving a better design of the overall system of child income supports, including child benefit, raises complex issues about the effectiveness and efficiency of the full range of income supports currently provided to families and their children. In this context and in line with a commitment in the Programme for Government, I established an Advisory Group on Tax and Social Welfare last year, which has been tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes achieved, particularly child poverty outcomes. The Advisory Group prioritised the area of family and child income supports and has completed its work on this area. Their report is currently receiving my consideration and will assist the Government in setting out a pathway towards a more appropriate system of child income supports.
It is envisaged that any proposed changes to the child benefit scheme and in particular a change from a universal to a means-tested payment would be considered in the context of the annual budget and announced on Budget day. Therefore I do not intend to signal anything about the government’s intentions in this area at this time.