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02/10/2012
Child Benefit Cuts Should Be Considered
Child benefit cuts should be considered by the Dáil, according to the Agricultural Minister.
Simon Coveney said the issue had not yet been discussed at Cabinet, but that it would have to discussed and decided upon in time, in the run-up to the Budget.
Mr Coveney said: "Last year a lot of people rightly raised the issue of is it fair that very high-income earners are getting the same supports through child benefit that people who are on low incomes are getting.
"At a time when you have to try and prioritise spending for families and parents and children who need financial support the most, then I think that it's something that we need to consider."
He said €2bn was spent on child benefit last year.
The minister set up an advisory group to investigate the issue.
The group said that payments could be cut to around €100 per child each month, which could save up to €200m a year.
Taoiseach Enda Kenny said the Government has not considered anything to do with child benefit, but revealed that Minister for Social Protection Joan Burton would bring her views to Cabinet in due course.
Sinn Féin's Aengus Ó Snodaigh has rejected calls for changes to child benefit in December's Budget and said the payment should be left alone.
He said the Government should instead introduce a third rate of tax on income over €100,000, which he said would produce more savings than any cut in child benefit.
(IT/GK)
Simon Coveney said the issue had not yet been discussed at Cabinet, but that it would have to discussed and decided upon in time, in the run-up to the Budget.
Mr Coveney said: "Last year a lot of people rightly raised the issue of is it fair that very high-income earners are getting the same supports through child benefit that people who are on low incomes are getting.
"At a time when you have to try and prioritise spending for families and parents and children who need financial support the most, then I think that it's something that we need to consider."
He said €2bn was spent on child benefit last year.
The minister set up an advisory group to investigate the issue.
The group said that payments could be cut to around €100 per child each month, which could save up to €200m a year.
Taoiseach Enda Kenny said the Government has not considered anything to do with child benefit, but revealed that Minister for Social Protection Joan Burton would bring her views to Cabinet in due course.
Sinn Féin's Aengus Ó Snodaigh has rejected calls for changes to child benefit in December's Budget and said the payment should be left alone.
He said the Government should instead introduce a third rate of tax on income over €100,000, which he said would produce more savings than any cut in child benefit.
(IT/GK)
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The Minister for Finance has called the rumours about cuts to child benefit or to the main social welfare rates as just speculation. Michael Noonan said the Government had not made those decisions yet on the Budget, adding that the only hard decision was the one he proposed himself, which was to increase the higher VAT rate from 21% to 23%.
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