Michael McNamara (Clare, Labour)
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Question 320: To ask the Minister for Social Protection the amount that has been expended on child benefit in each year from 2000 to date in 2011; the number of children in respect of whom these payments were made, respectively; the measures, such as progressive taxation, taken by her to ensure that these payments aided those most in need over parents of less needy children; and if she will make a statement on the matter. [34588/11]

Michael McNamara (Clare, Labour)
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Question 321: To ask the Minister for Social Protection the amount that has been expended on child benefit in each year from 2000 to date in 2011; the number of children in respect of whom these payments were made, respectively; the measures, such as progressive taxation, taken by her to ensure that these payments aided those most in need over parents of less needy children; and if she will make a statement on the matter; and if she will make a statement on the matter. [34597/11]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 320 and 321 together.

The tabular statement below details number of families and children in receipt of Child Benefit from 2000 to 2010 as well as expenditure over that period. Details for expenditure up to end October 2011 and for recipient families/children in September 2011 are also provided. Child Benefit is a universal payment that assists parents in relation to the costs associated with raising children and it contributes towards alleviating child poverty. The Government is conscious that this payment is an important source of income for all families with children, particularly during a time of recession and unemployment. The Department of Social Protection also provides assistance to low income families with children through increases to primary social welfare payments in respect of qualified children and through the family income supplement.

Taxation of Child Benefit is a matter for my colleague the Minister for Finance. The taxation of Child Benefit, along with means testing or income testing of the payment, have been identified as possible approaches to making Child Benefit more selective. While these approaches could have the effect of facilitating increased targeting of support to lower-income households, they vary considerably in their effects and practical implementation. Analysis of both of these approaches has noted that there are considerable logistical and legal issues associated with both taxation and means testing of Child Benefit. Furthermore, there are common difficulties in relation to defining income, the unit of assessment and the scale of administrative effort required. Moreover, the taxation or means testing of Child Benefit would only address one of the main child income support payments and would not in itself create a better design of the overall child income support system.

Taking everything into account, I would prefer that any reforms in this area would comprehensively address the broad range of issues raised in earlier analysis of these approaches. For this reason I have asked the Advisory Group on Tax and Social Welfare, which I established last June, to prioritise the issue of family and child income supports. The group is considering various approaches in relation to child income support payments to ensure that outcomes in relation to employment incentives and child poverty are improved.

*Expenditure for 2011 covers period to end October; children and family beneficiaries are for end September 2011