Tom Barry (Cork East, Fine Gael)
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358. To ask the Minister for Social Protection the steps being taken, and continue to be taken, to address concerns about large sums of money being paid in children's allowance to families who are not resident in the State. [18516/13]

Joan Burton (Dublin West, Labour)
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Child benefit is not generally payable in respect of children who are resident outside the State. However, special arrangements do apply where a parent is working here and the children are resident in another EU Member State. In 2012 the total cost of paying child benefit in respect of children resident in other EU countries was approximately €13 million, down some 36% on 2008 when costs peaked. This represents 0.65% of the total cost of child benefit expenditure.

The social security rights of people living and working in the EU are governed by EU regulations which co-ordinate social security systems and are designed to ensure that people are not disadvantaged by moving within the EU to take up work. For the purposes of the EU regulations, Irish child benefit is classified as a family benefit and there are specific rules governing the payment of these benefits. EU nationals who come to work in Ireland but whose families reside in another EU Member State may have an entitlement to family benefits in Ireland under the EU regulations. As a Member State of the European Union, Ireland is bound to apply these regulations in accordance with the objective of the EC Treaty regarding free movement of persons.

Before payment is made in respect of children resident in other EU countries it is necessary to contact the authorities in the country of residence of the children to confirm details and establish what, if any, family benefits are payable in the home country as this will impact on any entitlement under the Irish system. Once payment has commenced, as part of the Department’s on-going control programme, these customers are required to confirm periodically their continued entitlement to benefit. Where questions arise in relation to entitlement, or there is a delay in responding to enquiries from the Department, payment is suspended pending investigation.

Changes to EU legislation to modify child benefit entitlements in respect of non-resident children requires the agreement of the European Commission as any proposals for amendments must be tabled by it. I have raised the issue with the Commission and with relevant Ministers from other EU countries. The Commission stressed the importance attached to the system of coordinating social security for the role it plays in encouraging and facilitating free movement of people across the Union. It indicated extreme reluctance to introduce changes along the lines that have been discussed in this country because they would discriminate against migrant workers and would not be in line with judgements of the Court of Justice of the European Union in this area.