Dáil Éireann Debate, Wednesday - 29 May 2013
27. Deputy Mary Lou McDonald asked the Minister for Social Protection if she has had any discussions with the Department of Education and Skills regarding potential changes to child benefit payments. [25717/13]
Amharc ar fhreagra29. Deputy John Halligan asked the Minister for Social Protection if she has been involved in any discussions regarding the proposal announced by the Minister for Education and Skills on 8 May 2013 to use child benefit funds to pay for preschool education; and if she will make a statement on the matter. [25869/13]
Amharc ar fhreagra52. Deputy Michael Colreavy asked the Minister for Social Protection if she will maintain child benefit at its current rate and as a universal payment in budget 2014; and if she will make a statement on the matter. [25722/13]
Amharc ar fhreagraI propose to take Questions Nos. 27, 29 and 52 together.
Child 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 in 2013 is around €1.9 billion and it is currently paid to around 611,000 families in respect of some 1.16 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. Since becoming Minister for Social Protection, I have strongly defended the universality of child benefit because the State must value every child and support families. The fact that every family receives child benefit, regardless of their employment status, also ensures there is not a disincentive to work. It is envisaged that any proposed changes to the child benefit payment would be considered in the context of the annual budget and estimates process and announced on Budget day.
In addition to child benefit, 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. Achieving a better design of the overall system of child income supports raises complex issues about the effectiveness and the efficiency 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, which has been tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes can be achieved, particularly child poverty outcomes. The Advisory Group prioritised the area of family and child income supports and its report on this issue was published in February.
This report makes important recommendations on how child benefit could be maintained as a universal payment while reforming the current system of child and family income supports so as to better target those who need these supports most. Given the range of complex issues involved, including fiscal, operational and legal considerations, as well as the implications for reforms in terms of child poverty and employment incentive outcomes, the Government has made no decision at this time on the core recommendations of the report. It is the Government’s intention that the report will now contribute to the policy debate on the matter. In considering the proposals to reform the structure of child and family income support payments, including the balance between income supports and services, such as child care, I expect the Government will also take into account further work by the Advisory Group on the issue of social protection and taxation supports for working age persons and more general developments in the budgetary and fiscal situation.
Government policy on the provision of child care services, such as those supported by the Early Childhood Care and Education scheme, is primarily a matter for my colleague, the Minister for Children and Youth Affairs. Any proposal to fund additional child care services from reductions in the child benefit scheme would require a Government decision within an overall budgetary context on which no indications can be given at the present time. It should also be noted that as the Government meets and acts collectively, Ministers regularly consult with their colleagues in Government on policy proposals and any implications that such proposals might have.
