Dáil Éireann Debate, Tuesday - 22 September 2015
138. Deputy Jim Daly asked the Tánaiste and Minister for Social Protection the position regarding the savings accrued to the Exchequer from the budgetary change made in 2010, terminating child benefit payments at 18 years of age, regardless of whether the person has completed second level education or not; and if she will make a statement on the matter. [31591/15]
View answer139. Deputy Jim Daly asked the Tánaiste and Minister for Social Protection the estimated cost of reversing the budgetary decision made in 2010 to terminate child benefit payments at 18 years of age, regardless of whether the person has completed second level education or not; if she will consider doing so in the upcoming budget; and if she will make a statement on the matter. [31592/15]
View answerI propose to take Questions Nos. 138 and 139 together.
Child Benefit is a monthly universal payment to assist with the costs associated with raising children. It is paid to around 616,000 families in respect of some 1.17 million children, with an estimated expenditure of around €1.9 billion in 2014. Child Benefit continues to be paid in respect of children up to their 18th birthday who are in full-time education or who have a disability. I am conscious that Child Benefit is an important source of income for all families and in Budget 2015 the Government increased child benefit by €5 per month, at a cost of €72 million.
Budget 2009 provided for the reduction of the age for which Child Benefit is paid from under 19 years to under 18 years. This measure was implemented in full in 2011 and has resulted in savings of €79 million on an annual basis. A value for money review of child income supports undertaken by the Department of Social Protection in 2010 found that participation patterns in education support the 18 year age limit for Child Benefit.
The estimated cost of reversing the budgetary decision made in 2010 to terminate Child Benefit payments at 18 years of age and to extend the upper age limit for those in education to 19 years would be in the region of €58 million in a full year. Any changes to the eligibility criteria for Child Benefit could only be decided in a budgetary context.
