Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

120. To ask the Minister for Social Protection her plans for the future of child benefit;; and if she will make a statement on the matter. [19154/13]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

Child benefit is a universal payment that assists parents with the cost of raising children and it contributes towards alleviating child poverty. The estimated expenditure on child benefit in 2013 is around €1.9 billion and it is currently paid to around 611,000 families in respect of some 1.16 million children. In line with a commitment in the Programme for Government I established an Advisory Group on Tax and Social Welfare, tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes can be achieved. The first report of the Group, examining child and family income supports was published in February.

In line with a commitment in the Programme for Government I established an Advisory Group on Tax and Social Welfare, tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes can be achieved. The first report of the Group, examining child and family income supports was published in February. This report makes important recommendations on how child benefit could be maintained as a universal payment while reforming the system of child and family income supports so as to better target those who need these supports most. There was a strong preference in the Group for an approach based on a two-tier child and family income support payment which would encourage work participation and allow for better flexibility in the targeting of support for different family types.

Given the range of complex issues involved, the Government has made no decision at this time on the core recommendations of the report. It is intended that the report will now contribute to a wider policy debate on the matter. In considering the proposals to reform child and family income support payments, including the balance between income supports and services, I expect that Government will also take into account further work by the Advisory Group on the issue of social protection and taxation supports for working age persons and more general developments in the budgetary and fiscal situation.