Child Benefit Rates

Dáil Éireann Debate, Tuesday - 9 July 2013

Tuesday, 9 July 2013

Questions (64, 96)

Jonathan O'Brien

Question:

64. Deputy Jonathan O'Brien asked the Minister for Social Protection if she will guarantee the current rates of child benefit as a universal payment; and if she will make a statement on the matter. [33251/13]

Michael Moynihan

Question:

96. Deputy Michael Moynihan asked the Minister for Social Protection if she will provide an assurance to Dáil Éireann that there will be no reduction in child benefit rates in the forthcoming budget; and if she will make a statement on the matter. [33227/13]

Written answers

Minister for Social Protection

I propose to take Questions Nos. 64 and 96 together.

Child benefit is a universal payment that assists parents with the cost of raising children and contributes towards alleviating child poverty. The estimated expenditure on child benefit in 2013 is around €1.9 billion and it is currently paid to around 613,000 families in respect of some 1.17 million children. The Government is conscious that child benefit, as a universal payment, is an important source of income for all families. Since becoming Minister for Social Protection, I have strongly defended the universality of child benefit because the State values every child and supports families. The fact that every family receives child benefit, regardless of their employment status, also ensures that there is not a disincentive to work. Any changes to the child benefit payment rate will be a matter for Government, to be considered as part of the annual budget and estimates process and I am not in a position to comment further at this time.

In addition to child benefit, 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. In the interest of achieving a better design of the overall system of child income supports, I established an Advisory Group on Tax and Social Welfare, 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 its report on this issue was published in February. It is the Government’s intention that the report will now contribute to the policy debate. Given the range of complex issues involved, including fiscal, operational and legal considerations, as well as the implications for reforms in terms of child poverty and employment incentive outcomes, the Government has made no decision at this time on the core recommendations of the report. In considering the proposals to reform the structure of child and family income support payments, Government will also take into account further work by the Advisory Group on the issue of social protection and taxation supports for working age persons and more general developments in the budgetary and fiscal situation.