Written answers

Monday, 11 September 2017

Department of Employment Affairs and Social Protection

Child Benefit Expenditure

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Solidarity)
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1772. To ask the Minister for Employment Affairs and Social Protection the estimated cost of restoring child benefit to 2008 levels; and the estimated cost of restoring the higher rates of child benefit for second and subsequent children to 2008 levels. [36832/17]

Photo of Regina DohertyRegina Doherty (Meath East, Fine Gael)
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Child Benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children up to their 18th birthday who are in full-time education, or who have a disability. Child Benefit is currently paid to around 627,000 families in respect of some 1.2 million children, with an estimated expenditure of over €2 billion in 2017.

Between 2000 and 2009, there were significant increases in Child Benefit payments and during that period overall expenditure on Child Benefit grew from €638 million to approximately €2.5 billion per year. This reflected a policy focus on targeting additional resources towards the provision of universal child income supports. Child Benefit is paid on such a basis i.e. without regard to household income.

Between 2009 and 2013 a number of reductions were made to Child Benefit as cost saving measures designed to reduce overall public expenditure with a view to restoring stability to the public finances.

Budget 2009 provided for the reduction of the maximum age for which Child Benefit is paid. A half rate payment was paid in respect of those aged 18 years in 2009 and from 2010 Child Benefit was no longer paid in respect of those aged 18. Child Benefit rates were reduced in both Budgets 2010 and 2011. Budget 2011 reduced the lower and higher rates of Child Benefit to €140 and €177 per month respectively and also introduced a third Child Benefit rate of €167 per month.

Budget 2012 maintained Child Benefit rate for the first and second child at €140 per month while reducing the monthly rate for the third child to €148 and for the fourth and each subsequent child to €160. It also proposed to standardise Child Benefit at a rate of €140 per month for all children from 2013. Budget 2012 also provided for the discontinuation of the grant of €635 paid at birth on all multiple births and when multiple birth children are 4 years of age and 12 years of age.

Budget 2013 reduced Child Benefit rates to €130 per month for the 1st, 2nd and 3rd child while Child Benefit rates for the 4th and subsequent children were set at €140 per month as announced in Budget 2012. From January 2014, the monthly rate in respect of the 4th and subsequent children was set at €130. No new changes to Child Benefit were introduced in Budget 2014.

In 2015 the monthly Child Benefit rate increased by €5, from €130 to €135 and in Budget 2016 there was a further €5 increase in the rate, from €135 to €140 per month.

Given the numerous changes made to Child Benefit since 2008 it is difficult to cost with accuracy reversing all the changes to the scheme since 2008. However, using all the available data it is estimated that the cost of restoring child benefit to 2008 levels would be in the region of €627 million. This figure includes an estimated cost of €522 million to restore the higher rates of child benefit for second and subsequent children.

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