The report of the Advisory Group on Tax and Social Welfare on child and family income supports was published in February 2013. It makes important recommendations as to how child benefit could be maintained as a universal payment while reforming the current system of child and family income supports through a two-tier payment so as to better target those who need these supports most, while minimising work disincentives.
Given the range of complex issues involved with this proposal, including fiscal, operational and legal considerations, as well as the implications for child poverty and employment incentives, no decision has yet been made on the core recommendations of the report. Any plans to change the current structure of child and family income support payments are a matter to be decided in a budgetary context. In considering Budgetary proposals, I expect that Government will take into account the work of the Advisory Group on this issue, as well as more general developments in the budgetary and fiscal situation.