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Dublin: 16 °C Tuesday 21 May, 2013

Explainer: Can you refuse Child Benefit payments?

Parents can decide not to receive the Child Benefit payment if they wish. But how?

Image: Sasko Lazarov/Photocall Ireland

CHILD BENEFIT is a monthly payment given to all parents for each child that is living with them and being supported by them.

According to the Department of Social Protection, the child must be aged under 16 or aged 16 or 17 and in full time education; or attending a FÁS Youthreach course; or physically/mentally disabled; and dependant on the parent.

Child benefit stops when the child reaches the age of 18.

But can you decided not to accept the payment?

Refusal

According to the Department of Social Protection:

If a parent does not wish to claim their Child Benefit payment, they can notify the Department of Social Protection in writing to that effect and their claim will be stopped in accordance with their wishes.

Child Benefit payment is not stopped (subject to the conditions outlined above) without a reason, so those wishing not to receive it have to contact the department.

How it works

If a child is born in Ireland, when the birth is registered the Department of Social Protection will begin a Child Benefit claim for the child.

If the parent is not claiming this benefit for another child, a new claim is created by the department and a partially completed claim form is sent to the parent for their signature and payment details.

If the parent chooses not to return this form, the Child Benefit will not go into payment.

If the parent is already claiming Child Benefit for another child, the new baby is added to their Child Benefit claim and payment begins automatically from the month after the birth.

A letter confirming payment is sent to the parent by the department. At that point, the parent can instruct the department to stop their Child Benefit payment.

How many parents?

What is not known, however, is how many parents have chosen to opt out of receiving Child Benefit, as the department does not have these figures on record.

It may choose to keep a record of these in the future, but this has not been confirmed.

Means testing

In July, opposition political parties and other lobby groups said they were against a suggestion by the IMF that Child Benefit should be means-tested.

The suggestion was contained in the IMF’s annual report on 18 July of this year.

Meanwhile, Tánaiste Eamon Gilmore said the same month that the Government is undecided on whether it will impose a tax on child benefit payments for high earners.

In an interview with the Sunday Times that month, Social Protection Minister Joan Burton said that she has asked an advisory group to examine how taxes on child benefit payments for parents who earn above €100,000 per year could be implemented.

But she added that she was not sure if the Government is ready for such a move yet.

Poll: Should wealthy parents be given the option to hand back child benefit?

Read: Government undecided on child benefit tax for wealthy>

Read: Opposition, lobby groups come out against means-tested Child Benefit>

Read next:

Comments (41 Comments)

  • The Government has lost the plot if they think anyone will give up a benefit that they’re entitled to…

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  • did u ever hear such bull shit

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  • So people who can afford to lose their children’s allowance get a choice but people who can’t afford to pay the household charge don’t!! This government have lost the plot. They’ve also lost the public support they had when elected. Same old, same old. Should just rename themselves as Fianna Fáil Nua.

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  • Surely if someone wants stop collecting child benefit all they have to do is stop collecting it! After 3 months with no claims the payments stop and they have to reapply! This has always been the case!

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  • If you can’t be bothered to go through the rigmarole of refusal you can gift the money back to the state. This doesn’t affect your tax account (I asked them).

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  • So wealthy people are being looked after again. They get to choose. We see no choice for pensioners, low paid civil servants, people who cannot afford household charge. This has to be the silly season.

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  • ?? Who would give that up ? I think they have lost the plot !

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  • What about the Politicians and their kids, they won’t survive without it and they are barely surviving as we speak!

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  • Just another sign of a weak government that can do absolutely fúck all right without making a complete and utter balls of it.

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  • How come the report Burton has say’s there is no way to return or decline the allowance?

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  • As far as I understand it , no one is forced to apply for child benefit ! . It was traditionally made out to mothers !

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  • This ridiculous idea further demonstrates the incompetence of the Irish political gombeens that inhabit Leinster house. Is there any moral / logical reason why millionaires and high income households are getting children’s allowance ? Why isn’t there means testing for this subsidy ? It is a national disgrace that this has been let continue while every low to middle income worker and the unemployed person has had to take major cuts.

    There should be means testing, any household with a combined income over €60,000 should not be getting this subsidy from tax payers.

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    • @tomrooney

      Why 60,000?

      Do you have some magical insight that I don’t?

      Just because a household brings in 60k does not mean they are not struggling…you are showing your ignorance of the times we are living in.

      It is a great misconception that the “poor” are the worst off. Normal middle income taxpayers are being hammered with various charges to support everyone else. Anyone earning above 35k per annum will attest to that.

      Wipe the the socialist diatribe from your mouth and read a little.

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    • “It is a great misconception that the “poor” are the worst off.”

      LOL – read what you just wrote.

      Although I agree that middle income households are being taxed in many ways that they shouldn’t when we need a real tax on wealth, I think the litany of social problems faced by the poorest in society more than makes up for giving them some slack from the charges and taxes faced by the middle-classes

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  • What a load of absolute and utter bollox. Make a decision about an income ceiling for Child Benefit, over and above which, Child Benefit will not be paid, made the decision, stick to it and execute it! Fannying around like this, giving people the option to refuse it is completely fúcked up, it’s a load of absolute bollox! What kind of a fúcked up country finds itself completely broke, yet still pays Child Benefit automatically to someone like Michael O’ Leary who earned 1.035 Million Euro in 2011, a man who had a personal worth of 187 Million Euro in the same year based on his Ryanair Shareholdings?!?

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  • Just when you think our government couldn’t get more ludicrous!

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  • PeeedOff 14/08/12 #

    One more useless solution by this Shower of reprobates, you couldn’t make this stuff up…!!!

    Do they really believe that if people are entitled to something, they will give up that entitlement…These Clowns are playing Fantasy Govt, the only firm decisions they can make is to take money from those who really need it, while dancing around the wealthy elite.

    The Blueshirts can’t be seen to be upsetting their wealthy cronies by Forcing cuts on Them…!!1
    They save the “Forcing” of cuts, tax increases etc for those that can least afford them…!!!

    I am sure the founders of Labour would be soooo proud of Moan Burton and the rest of her Smoked Salmon Socialist brigade…!!!

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  • I know there are many out there struggling to get by on their weekly wage/benefit payment but I know of quite a few receiving social welfare who have enjoyed lovely summer holidays this year, how can they afford it? We are in the over €60,000 bracket and haven’t had a holiday for 4 years and can’t c our way to having 1 for a few years yet, I do wonder where we are going wrong!

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  • I think if a household earns €75k a year or more, then they will not be entitled to childrens allowance, cap it, no expensive means testing and NO choice for the wealthy. Millions of euros leave ireland every year in childrens allowance, money for children that do not live in Ireland and do not have the expense of living in Ireland.

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  • @ The Gregorach, First of all I must correct you on your false assumption that I am a socialist, I’m far from it, in fact I see socialism as a failed ideology. I would consider myself to be economically libertarian if anything.

    I think the majority of people in Ireland would agree that a household with an income of €60,000 per annum is a fair figure considering the average industrial wage is around €35,000 per annum I think almost double this should be more than enough to get by without the need for the state to pay children’s allowance.

    As for your contradictory statement about “poor” people not being worse off financially, I wont even bother with a reply.

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    • Oh dear Tom…

      1. I never accused you of being a socialist.

      2. your point about the 60k is utter drivel and completely unsubstantiated. Everyone cuts their cloth accordingly…its human nature.

      3. The very fact that you have a classification for yourself makes you a socialist. Unstrap the ego sunshine and have a day off.

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    • @The Gregorach, so you’re a liar as well as very ill informed.

      You said “Wipe the the socialist diatribe from your mouth and read a little”

      Does the above not imply I would be a socialist ?

      Then you go on to display your ignorance further by claiming just because I espouse a form of economic policy namely ‘Libertarianism’ this in itself means I am socialist. Besides the fact Libertarianism is seen as right wing and the furthest thing from Socialism you can get, can you not see the stupidity in what you just wrote ?

      I suspect you’re a troll, of the FG/LP kind, you will have no more interaction from me.

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    • @tomrooney thank you for proving me correct and cheering me up on this rather dull morning.

      Incidentally, whether you interact with me or not is inconsequential…you and your kind do not even figure as contributors to society.

      I do feel sorry for you as you will wake up in twenty years and realise that you have not had an original thought…you just read what other people have written and pass it off as your own.

      The truth must hurt to get such a reaction, particularly when you have called me a liar.

      Just for the record I am neither ill informed nor a liar…Oh! I am also not an FG/LP troll either. Just a hardworking, honest sap who pays their taxes, looks after their family and contributes to my community.

      I wonder if you can claim the same?

      Ta ta for now “libertarian”…do call again when I need cheering up.

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  • @The Gregorach, it is clear for all to see, you are an idiot who contradicts himself on a public forum, exactly the type of goon that has Ireland in the mess it’s in. You contradict yourself and lie yet somehow have the arrogance to imply you or your opinion are worthy of consideration ? Your arrogance is a thin veil for your ignorance.

    You come across as a self righteous troglodyte with the IQ of a rock, the type that never done a hard days work in their lives, always had daddy’s money to fall back on and never achieved anything in life under their own steam.

    In short you are a non entity and an obvious troll, get back under your bridge troll boy.

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  • Wat does my head in is how Joan Burton is all out to catch the social welfare fraud people n states how many millions in cash has been recovered. Yet that money has not gone back into the pot for those who genuinely need it. N I am a carer for my son who has aspergers n type 1 insulin dependant diabetes. Many more of us who rely on the payments Yet more cuts. Where does the recovered money go?

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  • What about offering parents a choice, opt out of child benefit and if you do third level will be free if your child takes up a third level course within a prescribed amount of time. Your child doesn’t attend 3rd level…tough, that’s the chance you took.
    If you wish to continue to claim your benefit and invest it in your child as you see fit, off you go.
    It would take a large burden off the weekly expenditure of gov without reducing our investment in children…it’s only an idea.

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    • Let me get this straight. Your idea is those who can afford to give up children’s allowance get free 3rd level education and those who can’t afford don’t? Really? Sounds like a FG plan alright!!!

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  • It should really be a tax break and only those not paying enough tax get it paid. Means testing is actually expensive so you have to wonder would that have ever worked out.

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    • @Kal lpers, there may be a cost to means testing but you can be sure it’s nowhere near the cost of giving children’s allowance to tens of thousands of people who dont need it.

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    • How can you be sure?
      I implemented means testing program and it is very expensive. Main problem is appeals and checking.
      Ever here of the 2k hammer? It isn’t fiction.

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    • What a load of bull. They can manage to means test every other form of allowance, and they have already said that they intend to means testing the household charge, how can it be any different for Child Benefit??

      Look, the reality here is that Child Benefit really only amounts to the monthly car payments or a college fund for tax payers. That’s why the government are terrified of even touching it. It would be a slap in the face for middle Ireland.

      The unemployed and low earners gain absolutely nothing through Child Benefit because social welfare entitlements in respect of dependent children are so woefully inadequate. The Child Benefit they receive is a trade off for the criminally low social welfare support they receive. How in the name of god could you feed, clothe and otherwise provide for a child on 24 euro a week????

      Stop listening to Right-Wing propaganda and ask yourself, people, why the government are so reluctant to means test Child Benefit?? Would you like to give it back my a@se??? They are the government, they can take it if they want to. They had no problem taking money of social welfare recipients.

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    • Actually they don’t manage means test other allowances. They can’t sort household charge but you think bringing in means test on every child is easy and cheap!
      I am basing this on experience what are you basing it on?they didn’t means test medical cards for over 70s as it wasn’t worth it. Considering there is a recruitment ban and software development cost how do you think it can it be done

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    • As I have already said Kal, they can manage to means test the things they want to means test. In other words every application for state assistance or entitlements. In case you are not aware the little number the government attach to ever citizen of the state allows them to check every legal financial transaction, social welfare claim or local authority application that you undertake. How much do you think it costs to get a low level civil servant to run a financial check on a single unique number??

      Child Benefit has, at the very least, to be subject to a means test. It is immoral to use the taxes paid by the lowest earners in society to pay for the cars, holidays and children’s college fees of people who simply do not need the money.

      End of discussion.

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  • @Doreen Savage, maybe you should do a course on money management, or are you living beyond your means ?

    Does your family have more than 1 car ?
    Did you and your partner get yourself into unsustainable debt through the purchase of a house that was beyond your budget ?
    There is no way you should be struggling with that income, cut your cloth to measure, your obviously living way beyond your means in some manner if you haven’t had a holiday in 4 years.
    Besides, how that is the responsibility of the tax payer is beyond me, there’s no way you should be getting children’s allowance with that income.

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