Written answers

Wednesday, 16 January 2013

Department of Social Protection

Child Benefit Review

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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To ask the Minister for Social Protection the date on which she received the expert report on reforming the child benefit system; the membership of this expert group; the terms of reference of this expert group; when she intends to bring the report to Government; when she will publish the report; and if she will make a statement on the matter. [1345/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Creating jobs and tackling poverty are two of the key challenges that Ireland now faces and it is essential that our tax and social protection systems play their part in addressing these issues. To this end, and in line with commitments contained in the Programme for Government, I established in June 2011 the Advisory Group on Tax and Social Welfare, with the aim of harnessing expert opinion and experience to examine a number of specific issues. This includes making cost effective proposals for improving employment incentives and achieving better poverty outcomes, particularly child poverty outcomes. The Group’s Terms of Reference and the current membership of the Group are set out in the following.

The Group’s overall method of working is based on producing modular reports on the priority areas identified in the Terms of Reference. The Group commenced its work programme by prioritising the area of family and child income supports and submitted its report to me on 28 March 2012. Since then I have been considering the Group’s findings and have held discussions with colleagues in Government on the issues raised in the report. I intend to formally bring this report to Cabinet later this month and thereafter publish it subject to agreement.

Advisory Group on Tax and Social Welfare - Terms of Reference

1. The Government agreed the following terms of reference for the Advisory Group:

a. To constitute a forum to which the Minister for Social Protection may refer specific issues around the income supports and tax systems so that they provide good incentives to take up work and to contribute to the reduction of poverty and child poverty in particular. In particular, the Advisory Group will examine the following specific issues and make recommendations on: i. Child and family income supports (in particular child benefit, increases for qualified children and the family income supplement); ii. Working age income supports (including unemployment payments and similar payments made by other agencies, one parent family payment, one parent family tax credit, back to work tax credit, increases for adult dependants as well as secondary benefits such as medical cards and rent and mortgage supplementary payments); iii. The appropriate unit of assessment in both the tax and social welfare codes; iv. How to address identified anomalies in the interaction of tax and social welfare codes.

b. To examine and report on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable;

c. To examine and report upon how to improve interaction between the tax, social welfare systems and other supports so as to improve the operation of both in a cost-effective way and in the delivery of positive social and economic outcomes;

d. To examine and report upon any other issue that may be referred to the Group by the Minister for Social Protection following consultation with the Ministers of Finance and Public Expenditure and Reform and the agreement of the Minister for Finance on taxation matters.

It is intended that the Advisory Group should consider any proposals for change to existing arrangements in a cost-neutral or cost-reducing context. 2. Following Budget 2012, the Minister for Social Protection, Joan Burton T.D. refers the following additional terms of reference to the Advisory Group: a. To examine and report on the policy objectives underpinning the Budget 2012 proposals regarding: i. Changes in the eligibility criteria and rates of payment for Disability Allowance (DA); ii. The increase in the age threshold for payment of Domiciliary Care Allowance (DCA); b. To assess the effectiveness of the Budget 2012 proposals in delivering on the policy objectives taking account, inter alia, the ease of implementation and the timing/phasing of implementation; and c. To consider alternative ways as to how the policy objectives might be achieved.

Current Membership of the Advisory Group on Tax and Social Welfare

Ita Mangan, Chairman of the Advisory Group

John Bohan, Department of Social Protection

Micheál Collins, Nevin Economic Research Institute

John Conlon, Department of Public Expenditure and Reform

Gerry Harrahill, Office of the Revenue Commissioners

Catherine Hazlett, Department of Children and Youth Affairs

Paul Kealy, Department of Jobs, Enterprise and Innovation

Pat Mahon, Pricewaterhouse Coopers (PwC)

Geralyn McGarry, Citizens Information Board

Aebhric McGibney, Dublin Chamber of Commerce

Brenda McVeigh, Department of Finance

Mary P. Murphy, Department of Sociology, National University of Ireland, Maynooth

Brian Nolan, School of Applied Social Science in UCD

Marie Sherlock, SIPTU

John Sweeney, National Economic and Social Council

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