Clare Daly (Dublin North, United Left)
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147. To ask the Minister for Finance if he will reverse the changes made to the single parent tax credit, which have seriously eroded living standards of responsible single fathers in particular and have had a negative impact on their ability to support their children. [25266/14]

Michael Noonan (Limerick City, Fine Gael)
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As outlined in previous responses to the Deputy in the matter of the Single Parent Child Carer Credit, it is essential to regularly review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them.

As the Deputy will be aware, the new credit is more targeted, in that it is in the first instance, only available to the principal carer of the child. It is designed to be an in-work benefit to support the primary carer to take up, or remain in, employment. It should not be considered as a supplementary source of income, on which the financial support of a parent depends. A system that allows multiple claims in respect of the same child is unsustainable in the current fiscal environment.    

The new credit follows on from a recommendation made by the Commission on Taxation in its 2009 report.

This measure was discussed at length during the passage through the Oireachtas of the Finance Bill, at which I brought forward an amendment to allow the credit to be relinquished by a principal carer such that a secondary claimant can avail of it provided they meet certain qualifying conditions. The Government, by allowing for such relinquishing, where a principal carer chooses to do so for whatever reason, actually provided for an additional option for single person child carers, over and above that recommended by the Commission on Taxation.

As regards the potential of this change to interfere with living standards or the level of maintenance payments, if such reasoning were to be applied, then any general tax increase, as a result of an adjustment in tax credits, rates or bands could lead to similar situations.  Ultimately, maintenance payments are a matter for parents and if necessary, the courts to decide. It is not possible, and indeed would not be appropriate, for the tax code to take account of every possible variable. I am confident that the new credit targets limited Exchequer resource to where they are needed most.