Dáil Éireann Debate, Wednesday - 22 January 2014
54. Deputy Joan Collins asked the Minister for Finance the amount of money he expects will save with the reduction in tax credits for single parents; and the number of persons that will be affected by the reduction. [3112/14]
Amharc ar fhreagraThe One-Parent Family Tax Credit has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. However, the new credit will be more targeted in that it will, in the first instance, only be available to the principal carer of the child.
When this measure was introduced in Budget 2014 it was estimated by the Revenue Commissioners that up to 15,400 individuals may be affected by the restriction of the restructured credit to the principal carer. However, as a result of an amendment which I brought forward at the Committee Stage of the Finance Bill which allows a primary carer to relinquish the credit such that it can be claimed by a non-primary carer, it is estimated that this number will reduce by 2,000 to 13,400. Ultimately however, the numbers affected will depend on the caring arrangements in place for each case.
Furthermore, at the time of the Budget it was estimated by the Revenue Commissioners that the expected yield from replacing the One-Parent Family Tax Credit with the Single Person Child Carer Tax Credit would be €18 million in 2014 and €25 million in a full year. The amendment introduced at Committee Stage of the Finance Bill had the effect of reducing this estimated yield to €16 million in 2014 and to €22.5 million in a full year.
