The position is that the new Single Person Child Carer Tax Credit is designed to be an activation measure, which was the original intention behind the One Parent Family Tax Credit, which it replaced. It is designed to be an in-work benefit to support a principal carer to take up, or remain in, employment.
The Commission on Taxation acknowledged that the One-Parent Family Tax Credit played a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the principal carer only. The restructuring of the credit achieves such an outcome.
The Deputy will be aware that this issue was discussed at length during the passage of the recently enacted Finance (No. 2) Act 2013, during which I brought forward an amendment to allow the credit to be relinquished by a principal carer such that a secondary claimant can avail of it provided they meet certain qualifying conditions.. As such I do not intend to review the matter in the short term.
With regard to your proposal that consideration be given to linking the credit to proven maintenance payments, this would mean that more than one individual could again be in receipt of the tax credit in respect of the same child. It should be noted that married couples do not receive tax credits to help them with the costs of rearing their children and therefore it would not be appropriate to provide tax credits to individuals solely on the basis that they pay maintenance in respect of children from their former relationships.
