Dáil debates

Tuesday, 16 October 2012

Ceisteanna - Questions - Priority Questions

Advisory Group on Tax and Social Welfare

2:20 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

The total spend on child benefit in 2012 is estimated at €2.078 billion. It is €199 million on family income supplement. The payment of qualified child increases of nearly €30 per week, which go to families on social welfare, account for a further €698 million, and the back to school clothing and footwear allowance accounts for another €64 million.

That brings the total spend on child-related benefits to just over €3.04 billion. In the context of a social welfare budget of €20.5 billion, it is a significant amount and that is appreciated by families in Ireland, particularly mothers. I am on the record many times saying that I value the universal payment because it is paid to the caring parent and directly in cash rather than, as happens in other countries, through the tax system or through tax credits. Given the amount we spend on this and other social welfare payments, the question arises of finding a way to target some of this money in a better way for families who are poor, in work or out of work and on social welfare benefits. Is it possible in the context of that €3 billion expenditure to produce better child poverty outcomes?

The Deputy asked about the advisory group. I have received its report and it is being examined in detail, particularly the issues the Deputy raised such as middle income families because our tax system does not have a direct tax allowance for dependent children. Child benefit is the direct support the State pays to the family. I must bring the report to Cabinet and I have taken the opportunity in the context of other issues related to children, particularly those experiencing poverty, to discuss it with the Minister for Children and Youth Affairs. The report has not been brought to Government yet but once it goes to Government, we will be in a position to publish it. We want to have a close look at how children who are in families who are out of work or in work on low incomes, are impacted by the suggestions in the report.

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