Michael McGrath (Cork South Central, Fianna Fail)
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15. To ask the Minister for Finance if he recognises that the removal of the one-parent tax credit will inflict significant hardship on many separated parents and jeopardise their ability to continue maintenance payments; and if he will make a statement on the matter. [49201/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the One-Parent Family Tax Credit is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current credit.

Given the difficult fiscal environment it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary refocused in order that they can achieve the socio-economic objectives that are set for them. A system that allows multiple claims in respect of the same child, as can happen with the existing credit, is unsustainable.

This new policy has been agreed by Government based on a recommendation put forward by the Commission on Taxation that the credit should be retained but that it should be confined to the principal carer only. The Government is satisfied that the restructuring of the credit will achieve such an outcome.

Furthermore, in the first instance, it is the responsibility of the parents to look after a child, including financially. The allocation of childcare responsibilities is also primarily for parents to agree. However, having listened carefully to the views expressed by my colleagues and many Deputies, I will be bringing forward an amendment at Committee Stage, which will allow the credit to be used by a non-primary carer in situations, for example, where the primary carer has no tax liability.