Emmet Stagg (Kildare North, Labour)

The Government was afraid of them after the medical card protest.

Deputy Brian Lenihan:

Child Benefit

In the supplementary budget, I raised the issue of the unfairness of paying the same level of child benefit irrespective of the level of income of the recipient. Not only is this unfair but it is also unaffordable in current circumstances. Child benefit this year will cost €2.5 billion or 12% of total social welfare spending. I had hoped to be able to introduce greater equity by making child benefit taxable or means tested but there are legal and logistical reasons I cannot do so at this stage. For that reason, the Government has decided to make the changes on the spending side.

Accordingly, the lower and higher rate of child benefit will be reduced by €16 per month, bringing these rates to €150 and €187 per month respectively.

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