Written answers

Thursday, 5 February 2015

Department of Social Protection

Child Benefit Payments

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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21. To ask the Minister for Social Protection her views on recent IMF commentary on the issues surrounding child benefit; and if she will make a statement on the matter. [4913/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Child Benefit is a universal payment made to families with children. It assists those families with cost associated with raising children. It is paid to almost 1.2 million children in over 600,000 families. The estimated expenditure in 2014 was €1.9 billion. I am aware that in its Concluding Statement of the 2015 Article IV Mission the IMF suggests that further means-testing of benefits, or taxation of universal benefits, could generate significant savings while ensuring those on lower incomes are protected. Child Benefit is of crucial importance to families, particularly middle-income families who would stand to lose money if a means tested or taxable system were introduced. Furthermore, means testing or taxing child benefit could raise significant legislative, operational, IT and incentive issues.

A crucial element of a strong and sustainable welfare system is the principle that everybody contributes, and that the system is there in turn to support those contributors at key stages in their lives. Child Benefit is one of the few universal payments in the welfare system in that regard, and its universality has an important role to play in maintaining the sustainability of the system.

We are committed to delivering a new deal on living standards to ensure that economic recovery is felt by low and middle income working families. Thus, Budget 2015 increased child benefit by €5 per month, at a cost of €72 million. Other measures supporting families include the introduction of the Back to Work Family Dividend and increased expenditure on school meals.

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