Dáil debates

Tuesday, 16 October 2012

Ceisteanna - Questions - Priority Questions

Advisory Group on Tax and Social Welfare

2:20 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

I will deal first with my question about child benefit. I realise the Minister cannot say specifically what will happen in the budget but there have been a number of proposals, one of which is that child benefit be cut by €40 and that a separate top-up system be put in place. Is the Minister seriously considering a two rate child benefit system, to include a top-up system? Does she agree that a family with two children would lose almost €1,000 per year - the exact figure is €960 - if the proposed cut of €40 is implemented? This would be a substantial amount for any family but for many families the removal of that amount could be a tipping point. Is the Minister aware that her Department's value for money review of child benefit, published in 2010, demonstrated the dependence of middle income families on child benefit? Its analysis found that households in the fourth and fifth of the ten income brackets fell below or on the poverty line after paying their taxes and that in many cases child benefit lifted them above that line. Many of those households would be affected by any change in child benefit if the Minister opted to move away from universality.

The Minister said she will publish the reports after considering them. Will that be before the budget changes or afterwards? That is a key question for Members on all sides of the House, so that when decisions are made in the budget they will have some idea where they originated and whether the reports are based on the facts of day-to-day living. I refer to the report of the advisory group on tax and social welfare and the report relating to the changes the Minister had intended to introduce to the disability allowance in last year's budget and on which she rowed back after the outcry from the people affected, particularly the parents.

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