Joan Burton (Dublin West, Labour) | Oireachtas source

I just want to add that some members of the group found that taxation of child benefit is an attractive reform option but it was recognised that there are difficulties in this regard. As it is focused only on child benefit, it would not contribute to a better overall design of the family and child income support system.

Additional information not given on the floor of the House

According to the group's report, the main legal issue relates to the requirement that cohabiting couples with children would not be treated more favourably than married couples with children. This could arise, for example, if the child benefit income was deemed to be the income of the income-earning spouse but could not be deemed to be the income of the income-earning co-habitee. The group also noted that questions had been raised in relation to ownership of the child benefit payment and therefore who would be assessed for tax purposes.

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.

I have asked for, and I welcome, as wide a debate as possible on these important issues. 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 that 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. Last week there was a good debate in the Seanad and the advisory group's report will be considered by the Joint Oireachtas Committee on Social Protection on 20 March. I look forward to hearing the views of Oireachtas Members and other stakeholders as part of the broader public debate.

Already out of this year's budget, I allocated €14 million in 2013 for a joint initiative between the Department of Social Protection and the Department of Children and Youth Affairs to provide over 6,000 additional after school care places.

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