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Labour Dail motion seeks to protect child benefit

Issued : Friday 27 November, 2009

The Dail will next week debate a Labour Party Private Members motion calling on the government to maintain child benefit at its current level in the December budget

The Labour Party Spokesperson on Social and Family Affairs, Deputy Roisin Shortall, who will move the motion said that the Minister for Finance, Brian Lenihan had indicated in the April budget that child benefit would be a priority target for the government and there was now intense speculation that the payment would be substantially cut when the budget details are announced on December 9th.

“The Labour Party recognises that child benefit accounts for a significant proportion on the social welfare budgets, but there are compelling reasons why it should continue to be a universal payment paid at the current rate.

“Families throughout the country are struggling to make ends meet in the face of the high cost of raising children and the cuts that have already been made to family incomes. In addition there is no recognition in the Irish tax system of the costs associated with bringing up children.

“Child care costs remain a particular burden where both parents are working, but despite this the government is planning to abolish the early childcare supplement in its entirety from January.

“The most frequent criticism of child benefit is that it is paid in respect of all children, regardless of family income. However, the value of the universal nature of the current system is that it does not disincentivise work or add to poverty traps.

“A real problem with the banded approach that the government is reported to be considering is that it would create serious anomalies, discriminate against certain children and parents, create new poverty traps and, in some cases, discourage participation in the workforce.

“In its pre-budget submission the Labour Party will be proposing a third rate of tax on individual incomes of over €100,000, thus ensuring that those in this category who benefit from child benefit pay something back.

“There are 1.15 million children and some 593,233 families currently benefitting from child benefit. This benefit continues to play a vital role in countering child poverty.

“The dismantling of the current system of child benefit would be a serious mistake and we believe that the Dail should have the opportunity to convey this message to the Fianna Fail/ Green Party government in advance of the budget.”

COPY OF MOTION ATTACHED

NOTICE OF MOTION
That Dáil Eireann:

Noting
1) the ongoing high cost of raising children in Ireland today and the significant cuts that have already been made to family income;

2) that the Early Childcare Supplement will be abolished from January;

3) the continuing very high cost of childcare;

4) that every child deserves to be cherished and recognised by the State, regardless of the circumstances of its parents;

5) that there is now no recognition of children in the tax system;

6) that the universal nature of the current system of child benefit does not disincentivise work or add to poverty traps;

7) that a banded approach to child benefit would create several serious anomalies, discriminate against certain children and parents, create new poverty traps, and, in some circumstances, discourage participation in the workforce;

believes that cutting child benefit would be far more deflationary than alternative revenue raising or cost-saving measures open to the Government; and

calls on the Government to maintain child benefit at the current level in the forthcoming Budget.