Dáil Éireann Debate, Tuesday - 12 June 2012
136 Deputy Dessie Ellis asked the Minister for Social Protection if she will provide an update on her plans to reform child benefit and in particular her suggestion reported recently in the media that it be taxed. [28046/12]
Amharc ar fhreagraChild 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 effectiveness 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 recently 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.
As the Deputy will be aware, issues relating to changes in taxation policy are a matter for my colleague, Michael Noonan T.D., Minister for Finance.
