Michael McNamara (Clare, Labour)
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To ask the Minister for Social Protection the amount that would be raised for the Exchequer by cutting the children's allowance by €10 per child. [54998/12]

Joan Burton (Dublin West, Labour)
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A reduction in Child Benefit of €10 per child per month would save the Exchequer €142.5m (in a full year).

Michael McNamara (Clare, Labour)
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To ask the Minister for Social Protection the reason required saving to the Exchequer expenditure on child benefit cannot be achieved in a progressive manner rather than a crude cut; if it is possible to tax it instead; and if she will make a statement on the matter. [55000/12]

Joan Burton (Dublin West, Labour)
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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. Budget 2013 provides for a reduction in child benefit rates to €130 per child per month for the first, second and third child in a family and to €140 per child per month for the fourth and subsequent children. Although the gross savings is about €136 million in 2013, some of these savings have been redirected towards services for children including after school childcare, an area based child poverty initiative and school meals which have the potential to improve outcomes for children generally.

While child benefit is an important source of income for families, the social protection system also provides assistance to families with children through the payment of qualified child increases (QCIs) on primary social welfare payments and through the family income supplement (FIS) payment which both provide assistance which is linked with household income. Budget 2013 maintains both the QCI rate and the FIS income limit thresholds.

While issues relating to changes in taxation policy are a matter for my colleague, Michael Noonan T.D., Minister for Finance, the taxation of child benefit would only address one of the main child income support payments and would not address the other child income support payments to low income families, which includes QCIs and FIS. In this context the Advisory Group on Tax and Social Welfare which I established last year was tasked with recommending cost-effective solutions as to how income employment disincentives can be improved and better poverty outcomes achieved. The Advisory Group’s report on family and child income supports remains under my consideration and will assist in informing how reform in this area might be progressed.