Written answers

Thursday, 25 June 2009

Department of Social and Family Affairs

Social Welfare Code

7:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 46: To ask the Minister for Social and Family Affairs her plans in relation to the means testing of child benefit. [23280/09]

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 47: To ask the Minister for Social and Family Affairs her estimate of the administrative cost of means testing child benefit. [23281/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 46 and 47 together.

As Deputies will be aware, the rates of child benefit have increased significantly since 2001 having trebled for the first two children and increased by over 185% for the third and subsequent children. Overall expenditure on child benefit grew from just under €965 million in 2001 to nearly €2.5 billion in 2008 as a result of these increases and growth in the number of eligible children.

The Government was able to direct such substantial increases in financial support to all Irish families in recent years. However, given the scale of the current economic crisis, it is necessary to address all aspects of the public finances so as to avoid excessive borrowing and to ensure that fairness exists in the allocation of resources. It was in that context that the Minister for Finance announced in the Supplementary Budget the Government's intention to either subject child benefit to income tax or means-test it from 2010.

In relation to the Deputy's question regarding the costs of a possible means-testing of Child Benefit, this would depend on a range of factors including the range and complexity of income sources to be tested. The issues arising from which approach to adopt are considerable. In view of the complexities associated with the two options, the Commission on Taxation is currently examining the issues arising from this proposal. Their deliberations will inform the Government's final decision on how to proceed.

Child Benefit is a key instrument in child income support policy with the main objectives of supporting families in the costs of rearing children and the alleviation of poverty. I assure the House that a decision on how best to proceed will not be taken lightly by the Government.

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 48: To ask the Minister for Social and Family Affairs her plans to amend the benefit and privilege rule for persons under 25 years of age. [23296/09]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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There are no plans to amend the benefit and privilege rules for under 25 year olds at this time.

Any further improvements to the means testing arrangements for social welfare schemes generally, including the benefit and privilege assessment arrangements for the jobseeker's allowance and supplementary welfare allowance schemes, would have to be considered in a budgetary context and having regard to available resources.

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