Written answers

Thursday, 15 November 2012

Department of Social Protection

Child Benefit Rates

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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To ask the Minister for Social Protection if she will ensure that cuts to child benefit for multiples are not carried through . [50569/12]

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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To ask the Minister for Social Protection her views on correspondence (details supplied) regarding child benefit; and if she will make a statement on the matter. [50673/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 132 and 137 together.

Child benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a physical or mental disability. The estimated expenditure on child benefit for 2012 is around €2 billion and it is paid to around 600,000 families in respect of some 1.15 million children. Parents of multiple birth children receive an additional monthly premia paid at one and a half times the monthly child benefit payment rate for each twin and double the monthly payment rate for each child in other multiple births. While Budget 2012 maintained this additional monthly payment, the multiple births grant of €635 paid at birth, at 4 years of age and at 12 years of age was discontinued.

As a universal payment child benefit assists parents with the cost of raising children and it contributes towards alleviating child poverty. The Government is also conscious that child benefit is an important source of income for all families, especially during a time of recession and high unemployment. Bearing this in mind, any plans to change the amount paid in respect of such payments will be a matter to be decided in a budgetary context and announced on Budget day. I do not therefore propose to speculate on any possible approaches to child benefit payment rates changes.

I am conscious that achieving a better design of the overall system of child income supports, including child benefit, raises complex issues about the effectiveness of the full range of income supports currently provided to families and their children. In this context and in line with a commitment in the Programme for Government, I established an Advisory Group on Tax and Social Welfare last year, which has been tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes achieved, particularly child poverty outcomes. The Advisory Group prioritised the area of family and child income supports and has completed its work on this area. Their report is currently receiving my consideration and will assist the Government in setting out a pathway towards a more appropriate system of child income supports.

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