Willie O'Dea (Limerick City, Fianna Fail)
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578. To ask the Minister for Social Protection her plans for the future of child benefit; if she intends to tax it or means test it; and if she will make a statement on the matter. [34857/13]

Joan Burton (Dublin West, Labour)
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Child benefit is a universal payment that assists parents with the cost of raising children and 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 613,000 families in respect of some 1.17 million children.

The Government is conscious that child benefit, as a universal payment, is an important source of income for families. While issues relating to changes in taxation policy are primarily a matter for my colleague, the Minister for Finance, I can confirm that the Government has not announced any plans to implement taxing or means-testing child benefit at this time.

In line with a commitment in the Programme for Government I established an Advisory Group on Tax and Social Welfare. The first report of the Group makes important recommendations on how child benefit could be maintained as a universal payment while reforming the system of child and family income supports. While some members of the Advisory Group found that taxation of child benefit is an attractive reform option, there was a strong preference in the Group for an approach based on a two-tier 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 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.