Written answers

Wednesday, 17 June 2015

Department of Social Protection

Child Benefit Reform

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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53. To ask the Minister for Social Protection her views on a matter (details supplied) regarding child benefit; and if she will make a statement on the matter. [24023/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Child benefit is the main policy instrument for assisting families with the costs of raising children. It is a universal payment that is paid in respect of all qualified children up to the age of 16 years, or to the age of 18 who are in full-time education or who have a disability. It is paid to over 615,000 families in respect of almost 1.2 million children, at a cost of €1.9 billion.

The Advisory Group on Tax and Social Welfare examined the structure of child and family income support in Ireland. The Group considered the means testing of child benefit would have considerable administrative consequences, as the scale of means testing would be greater than anything required by the current system. Instead the Group recommended that child benefit should continue to be paid on a universal basis.

It is my intention to retain child benefit as a universal system to assist families with the cost of raising children. 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.

For that reason, child benefit was increased by €5 a month, or €60 per annum, from January 2015. This recognises the sacrifices that families made during the economic crisis and the fact that families are continuing to face difficulties. In the Statement of Priorities, the Government promised a new deal on living standards for hard-pressed families, and this increase is in line with that commitment.

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