Dáil Éireann Debate, Thursday - 27 September 2012
103. Deputy Brendan Griffin asked the Minister for Social Protection the savings that will be made by an obligatory return of child benefit by households with incomes of over €100,000; if the Revenue Commissioners will be in a position to enforce this policy; and if she will make a statement on the matter. [41125/12]
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. Child benefit is paid to around 600,000 families 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 to low-income families.
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 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 has 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.
Given the universal nature of child benefit, claimants are not asked to make a declaration of their income or that of other members in their family. It is not possible therefore to make a reliable estimate on the basis of available data of any savings that might accrue through the non-payment of child benefit to persons in households with incomes of over €100,000 per annum. A detailed estimate of this nature would not only require current household income data but also detailed specifications of the definition of income, whose income was to be included, what time period was to be considered etc. Issues regarding compliance procedures of the Revenue Commissioners do not therefore arise and in any event would be a matter for my cabinet colleague, the Minister for Finance.
