Richard Bruton (Dublin North Central, Fine Gael)
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Question 323: To ask the Minister for Social and Family Affairs the Exchequer savings in 2010 by reducing all social welfare payments by 3%. [8918/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It is estimated that a 3% reduction in the value of all weekly and monthly rates of social welfare payments in 2010 would yield €553 million.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 324: To ask the Minister for Social and Family Affairs if she has investigated the modalities of applying a means test to eligibility for child benefit and the early childhood supplement; if so, the expected savings from such a means test if applied at various income thresholds; and if she will make a statement on the matter. [8946/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Policy matters in relation to the Early Childcare Supplement are a matter for the Minister for the Health and Children in the first instance.

The Department of Social and Family Affairs, through the social welfare system, provides significant support to families with children. The Child Benefit programme, which is paid on a universal basis is the main child income support programme. It provides significant levels of support for families with children irrespective of their income or employment status. Improvements in the Child Benefit programme together with other more targeted supports have allowed the rate of poverty for children to fall according to statistics published by the CSO. The consistent poverty rate for children, aged 0 — 17, decreased from 10.3% in 2006 to 7.4% in 2007. The percentage of children 'at risk of poverty' fell by over two per cent, from 22.3% in 2006 to 19.9% in 2007.

The question of paying Child Benefit on a targeted basis has been raised on a number of occasions in the past. However, an estimate of savings which might be expected from a more targeted approach to Child Benefit and child income support in general would require a large number of detailed assumptions in relation to technical and legal issues (such as earnings thresholds, rates of withdrawal etc) or in relation to the very considerable administrative implications of such a proposal. Estimates of second round effects such as impact on labour force participation decisions and on other social welfare benefits would also have to be taken into account for a comprehensive assessment of such a measure.

The Minister for Finance announced as part of Budget 2009, that he expects the Commission on Taxation to examine options relating to the tax treatment of universal child benefit payments. Pending the Commission report and in the absence of specific proposals, the Department has not estimated savings from such an approach at this time. The Department will, however, work with the Commission in addressing this issue.