Paudie Coffey (Waterford, Fine Gael)
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Question 223: To ask the Minister for Social Protection the costs to the Irish Exchequer of paying children's allowance to families who claim the allowance but whose children reside outside this State; and if she will make a statement on the matter. [32371/11]

Joan Burton (Dublin West, Labour)
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The social security rights of people moving around the EU are governed by EU Regulations 883/2004 and 987/2009. These Regulations, which have been in existence in one form or another since 1959, are designed to co-ordinate the social security systems of the various Member States so that people and their families are not disadvantaged when they move within the EU.

A key principle of the co-ordination system is that persons moving to different Member States are subject to the same obligations and enjoy the same benefits as the nationals of those Member States. With few exceptions, it is the country of employment which receives the social security contributions and which is generally responsible for the payment of benefits.

Irish child benefit is classed as a family benefit and there are specific rules governing the payment of these benefits. EU nationals who come to work in Ireland, and who pay Irish social security contributions, are entitled to receive child benefit in respect of their families, even if the family resides in another EU Member State. The equality provisions of the Regulations require that these payments are made at the same rates applicable to a person whose family is resident in Ireland. These provisions are seen as important in an EU context for the role they play in encouraging and facilitating the free movement of EU citizens.

The cost of paying child benefit in respect of the 4,929 customers with 7,798 children in 2011 to date has been €10.9m. It is estimated that the full year cost will be €13.1m.

Paudie Coffey (Waterford, Fine Gael)
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Question 224: To ask the Minister for Social Protection if she plans to review the rate of children's allowance paid from the Irish Exchequer to non-national families whose children reside outside this State with a view to paying the allowance at a rate equal to the rate that is applicable in the country where the qualifying child or children reside; and if she will make a statement on the matter. [32372/11]

Joan Burton (Dublin West, Labour)
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The social security rights of people moving around the EU are governed by EU Regulations 883/2004 and 987/2009. These Regulations, which have been in existence in one form or another since 1959, are designed to co-ordinate the social security systems of the various Member States so that people and their families are not disadvantaged when they move within the EU.

A key principle of the coordination system is that persons moving to different Member States are subject to the same obligations and enjoy the same benefits as the nationals of those Member States. With few exceptions, it is the country of employment which receives the social security contributions and which is generally responsible for the payment of benefits.

Irish Child Benefit is classed as a family benefit for the purposes of these regulations and there are specific rules governing their payment. EU nationals who come to work in Ireland, and who pay Irish social security contributions, are entitled to receive child benefit in respect of their families, even if the family resides in another EU Member State. The equality provisions of the Regulations require that these payments are made at the same rates applicable to a person whose family is resident in Ireland. These provisions are seen as important in an EU context for the role they play in encouraging and facilitating the free movement of EU citizens.

The provisions relating to the payment of child benefit for non-resident children are not part of Irish domestic legislation but are, as already indicated, a feature of EU regulations governing the coordination of social security systems. Accordingly, any change to the system will require a change in EU regulations. Only the EU Commission, and not individual Member States, can propose new legislation. At Council level, the Regulation would require a qualified majority of Member States and it would also require the agreement of the European Parliament.

As part of its agreed programme, the Government is committed to raising the issue of payment of Child Benefit in respect of non-resident children at EU level, and to seek to have the entitlement modified to reflect the cost of living where a child is resident.

I raised the possibility of a change to the EU regulations informally with EU Commissioner Andor on his visit to Dublin in June. The Commissioner indicated he would not favour putting forward such a proposal for the foreseeable future, as the Commission views the current arrangements as providing greater equality between citizens of different EU States. However, I am continuing to raise the issue with appropriate Ministers from other EU countries and am considering what further action may be possible.