TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 15 °C Saturday 25 May, 2013

Fears mount over Budget cut to child benefit

Labour’s Jan O’Sullivan has admitted that child benefit could be subject to cuts, despite warnings it could “push families into poverty”.

Image: Sasko Lazarov/Photocall Ireland

CHILD BENEFIT IS vulnerable to cuts in the Budget as it is not a “basic social welfare rate”, a Government minister has insisted.

Fears are mounting that the welfare payment could be hit by a blanket cut of €10 a month, after reports yesterday suggested the measure was on the table for the upcoming Budget.

Independent senator Jillian van Turnhout, of the Children’s Rights Alliance, has warned that such a measure “will push more families into poverty”.

Yesterday Jan O’Sullivan, Labour Minister of State for trade and development, appeared to admit that the cut could be on the way.

She told RTÉ’s The Week in Politics that “basic social welfare rates will be maintained” in the upcoming Budget, adding: “Child benefit is not one of the core, basic, as in total income social welfare rates.”

She continued: “Look, we do not want to have to do this, but certain measures have to be taken. And they have to be taken in a way which protects the least well off as well as we can.”

Jillian van Turnhout told TheJournal.ie that an across-the-board cut in child benefit would be a “blunt instrument” which would affect families nationwide. “Already Barnardos are telling us that children are going hungry, and we’re hearing this from schools around the country also,” she said.

The senator added that it would be the third time child benefit had been cut in successive Budgets.

She suggested that if there was a problem with those on higher incomes receiving child benefit, then it should be taxed back to the Exchequer as part of their income tax calculation.

TheJournal.ie revealed on Friday how leaked draft financial documents show the Government will heavily target social welfare to achieve Budget savings.

According to the Irish Independent, a cut of €8 a week in unemployment benefit is also being considered by the Government. However, sources told the newspaper that Minister for Social Protection Joan Burton was resisting the measure.

Read more: Child benefit to be ‘cut first and reformed later’>

Budget leaks: Social welfare to bear burden of cuts, Government tells EU>

Read next:

Comments (47 Comments)

  • @Kevin..Heartily agree with that post….but I would seriously doubt your first point would be even looked at. Anything that dips into the politicians pockets or the cronies in the public service is doomed to fail. We are fortunate enough that a €10 cut per child in child benefit won’t hurt that much and I’m quiet happy to take that cut to help where I can but what bristles against me are the broken promises and the lies told by both government parties prior to being swept into office…so much for transparecy…

    Reply
  • These are things they could do instead of increasing the VAT rate or reducing child benefit which would save a lot more money without affecting the vulnerable.

    1. Following the 2% pension raid on private sector pensions the goverment should apply the 2% to all civil servant & politican pensions awarded in the last 5 years (rats off the ship) any lump sum payments, golden handshakes etc over 50k made during that period the amount over 50k should be retrospecively taxed @ 50%.

    2. Amend Croke Park that any civil servant or politician earning over 60k, that amount is cut by 25%. Any politician or civil servant earning over 100k that amount is cut by 50% (Front line civil servants need to grow up and stop being wheeled out to be cannon fodder for the incompetent, overpaid administrative and management sections of the civil service where everyone wants the cuts to be made but they are allowed to hide behind front line staff and discredited unions)

    2. Non nationals are entitled to benefits for 6 months, then they stop and either get a job or return to there country of residence. This is what you are entitled to in other EU countries i.e spain etc.. Why is irelands benefit tourism being borrowed for and repaid by taxpayers and future generations, when we have highly renumerated officials & politicians overseeing it? (maybe staff from the dept. of welfare check the passports of people, wifes, children arriving at dublin airport and leaving again after signing on as it is rampant and a sick joke)

    3. No Childrens benefit for any child that is resident outside of Ireland.

    4. The issuing of work visas needs to be reviewed as too many irish workers and graduates are unemployed… Please don’t hide behind, being in the EU.

    5. The dept. should check in the UK & NI, how many recipients of benefits are in employment there as they can fly in, fly out or drive in, drive out out and receive dole, medical card etc and the big one people don’t count is mortage interest relief (all you need is p45 make application and once through, drive to NI or fly to UK).

    5. The Goverment of this country elected on a mandate by the citizens of this country MUST act in the best interests of the citizens and not vested interests, unions, bond holders, french or german banks or EU officials who pat you on the head and tell you your a good little boy.

    6. Also maybe they could enact some laws in relation to white collar crime to hold the people accoutable for the banking fiasco were numerous laws have been broken (or are they afraid of these laws being applied to there buddies?)

    Reply
  • How could FG\Lab think they could make these promises and not have to break them? They knew full well how bad the state finances were going in to the election. They lied to everyone about protecting the most vulnerable knowing they would end up breaking those promises.

    Reply
    • The Polish finance minister has expressed concern about this cut as it will affect thousands of children living in Poland who are eligible for Irish child benefit as their parents are in Ireland.

      The parents’ home country usually pays the standard rate of child benefit, which in Poland is €11 per month. The Irish exchequer must then top this up to the full Irish rate — €140 per month for a first and second child.

      This is lunacy! Why are we paying to raise the Polish children living in Poland when we can’t take care of our own?

      Reply
    • I raised this issue with dept of finance previously and all they could say was that Irish families would benefit to the same extent if a parent was working in Poland.

      i can understand the Irish gov paying the ?11 but not the full ?100+, it makes no sense when the cost of living is obviously so much lower there.

      Reply
    • maura 21/11/11 #

      This is a law of the E,U, been there from the beginning of our joining. Children of other E.U states entitled to Child Benifit

      Reply
  • Is this government ever going to stop. Cuts to child benefit, cuts to the dole, water tax, property tax, vat increase, motor tax increase. Do they think we’re going to pull the extra money for all this out of our arse.

    Reply
  • Simon 21/11/11 #

    Have the Germans confirmed that they are going to cut the Irish child benefit yet?

    Reply
  • Now there will be no stopping them!
    Whatevers next!!!

    Reply
  • Ciaro 21/11/11 #

    Next is mass demonstrations.

    Reply
  • We all knew there were problems that would require measures like this but were so sick and appalled by Cowen and co that we wanted a new shower in asap. There isn’t one radical thinker among the new coalition so there was never any reason to suspect that there would be a viable alternative to straight forward cuts. It’s a shame this country has been reduced to this but in reality we knew it was coming.

    Reply
  • Tax it! All those earning 1 1/2 times avg. industrial salary at 20-40%. That’s fair, equitable and protects the most vulnerable. Why they have not worked on this for the last 8 months I have no idea!
    The most efficient dept is revenue, families have received maternity benefits and they would have a database already compiled to draw off. Hate to think of the negative affect on struggling families this will have.

    Reply
  • Child Benefit has nothing to do with social welfare,I am really sick at the amount of people who really by the sounds of it have any life experience, on a personal note I don’t smoke nor drink nor go out, every cent is spent on my kids and the costs are mounting,my kids school sent a note home 2 weeks ago saying they need € 260 off me to help fund it, because the dept of education do not give the school enough funding, that’s on top of the €150 I paid first week in september the cost of stuff is increasing gas esb it’s never ending and at this stage I wish Xmas was abolished because it’s causing me nothing but grief.

    Reply
    • Aaron 21/11/11 #

      While I appreciate having a child is expensive how or why is that everyone else’s problem and why should you receive benefit for it?

      It was your decision to have kids. Did you factor in child benefit when figuring out if you could afford children?

      Myself and my wife both work full time and still can’t afford to have kids. So explain to me why the taxes we pay should go to you and everyone else with kids when we can’t afford to have any!

      Reply
    • The amount of profession people who rely on that payment to put food on the table,their wages pay their mortgages while this payment gets food in for a month, Ireland 5 yrs ago to Ireland now are so much different you can’t compare, you really don’t have a clue on how being pretty well off a couple of yrs ago to counting the penneys we are now

      Reply
    • Aaron 21/11/11 #

      That’s where your wrong. I do have a clue because even without kids we’re struggling to pay the mortgage, bills and have enough petrol in the car to make sure we can get to work but there’s no one jumping to our rescue with an added income each month.

      So once again, why should the taxes we pay supplement your lifestyle when we can barely keep our heads above water ourselves?

      Reply
    • I’ll give you a scenario person a works in a job connected to construction talking any thing from 50/70000 per yr his wife is also employed in the HSE on 40,000 they have 3 kids they bought a house in the locality they were brought up in, fast forward 5 years he has no job they rely on her wages which has been cut to pay their mortgage/gas/esb while child Benifit pays for their food and petrol, I can safely name several other couples in the same boat.

      Reply
  • I really don’t think the Govt. realises how much of a difference that €10 would make if it was taken away, especially when other benifits are being cut, taxes increased, and water charges are being introduced. The cost of living is going up and average families income is going down.

    Reply
    • Obviously Sean, some people who are giving you the thumbs down are part of the ivory tower class, who dont understand that 10 euro a week can be the difference between putting food on teh table and not putting food on the table. It really irks me so much that there are people out there who just dont get it.

      Reply
  • No one in receipt of welfare, married or single, with one child or twenty, should be receiving more than the average industrial wage. All welfare expenditure should hinge on this simple principle.

    Reply
  • Why can’t they Means Test it

    Reply
    • That would be the proper answer but probably take too long and cost to implement. Easier answer would be to tax it but apparently welfare and revenue systems aren’t compatible which is a massive joke.

      Reply
    • Means testing is the fairest way. Give to those who need it most & not to those, esp wealthy people, who don’t need it. It ought to be simple to implement that. No big deal really, I think. This “it can’t be done” nonsense doesn’t wash with me. That’s why we are where we are today. No innovative thinking & always putting barriers up, real or imagined, to do the right thing.

      Reply
    • Is taxing it not the most efficient way of means testing it? I have to agree with other posters though how could we be in the same scenario again where a fairer implementation of cuts has not been devised……we’ve had 4yrs total to start using a scalpel rather than a hammer…….Is it the civil service thats the problem here???

      Reply
    • maura 21/11/11 #

      How about revisiting the CROKE PARK AGREEMENT. that would be a start. But reducing the pay and pensions of senior Civil Servants also effects the politicians so we may have snow in July. (More likely I would guess)

      Reply
  • And now they have access to the bus lanes!!!!

    Reply
  • Adam I’ve not yet met a child who earns more than the average wage, I’m sure there are some but most children in this state are just happy not to go hungary.
    This is about children from working class backgrounds who’s parents need every cent to keep clothes on their backs amd their family fed. Those who don’t need this allowance can have it taken away by other means.

    Reply
  • Kev Mak 21/11/11 #

    Jan O’sullivan says they have to take the easy option of taking from the poorest as they have no radical ideas just the same lame ideas as the last government.Its another sure thing they know they wont be in power next time around.That is if us mortals dont take to the streets en-mass at the next leak of austerity cuts.Does leaking this info now hope to take the sting out of it when its actually confirmed in the budget and I await eagerly for the next’leak’ ! Tax on all fuels, higher car tax, higher medicine charges,just in case those that are ill havnt paid attention.I wonder how the politicions pensions are doing.

    Reply
  • If everyone sent an email to your local government TD ( most of us have about 3 of them ) and tell them under no circumstances will you vote for them in the next election if child benefit is cut. Let them know that they have to put pressure on Joan Bruton and Enda kenny.

    Reply
  • What about the people fraudulently claiming carers allowance. I know one person who is claiming for a teenage son who allegedly has attention deficit and has now engineered extra for a daughter allegedly with a different condition. It seems odd to me that a person with attention deficit can play on a game station for hours at a stretch as this one does and the parents openly brag about it.

    There is wholesale fraud being carried out without any comeback whatsoever.

    Easy option, take from every one it’s easier than carrying out checks.

    Reply
    • Very easy Howard, if you know of fraud, report it. Why wait for someone else to discover it

      Reply
    • It’s really hard to even get domiciliary care allowance, my youngest daughter has spent best part of 6 yrs in and out of Crumlin children’s hospital only to be told by the powers that be she is not intitled to it, do you know many 6 yr olds being pushed around in a buggy? She has under went a lot of surgery and she will need more in the future. ADD is a difficult one and just because someone looks fine does not necessary mean they are

      Reply
  • Senator van Turnhout is spot on – there are many ways that child benefit payments could be targetted at those who really need it without the need for the introduction of an expensive means test. Tying it in to income tax would be a start, although it would probably hit PAYE earners more than the self-employed. They could also introduce self-assessment with random inspections and large fines for those found abusing the system. This “blunt instrument” shows a worrying lack of imagination in the government and a lack of awareness of the hardship being experienced by so many around the country.

    Reply
  • I dont know how many times pre the election and since the election, i have posted this ….
    There are alternatives to FG/FF/Labour …
    Its SF. They have committed to leaving existing tax rates in place, and introducing a 2% increase on all income over 100k per year. SF are committed to the Euro, but have said very publicly they will not pay one cent to unsecured debt. SF have also committed to ensuring that NO-ONE, not policticians, not RTE presneters, not civil/public servants will receive one cent over 100k per year.
    You can moan all you want about the failed promises of this government and th last government. but until you start showing the establishment parties that you will not take their lies anymoe, you are going to have groundhog day from here to eternity. Our current governmenbt plan tp pay 3,200, 000, 000.00 (or 3.2 billion) to unsecured bondholders in February. People wake up. The establishment parties will continue to say that SF are out of touch with reality. Yet any eminent economists are saying that SFs policy is the only way to get this country back on track.
    Use your votes more wisely next time out and make sure you do not vote for an establihment party, who lie through their teeth coming up to every election. If labour really are a left-wing party, they would not even entertain cutting childrens allowance to the lowest income families in our country. Labour are as much left wing, as the Nazis were a peaceful orgainsation out to better mankind. WAKE UP.
    The etablishment parties have gone after the poorest and least well off in our society, making sure they will not significantly impact the welathiest in the country. They will continue to use the last Government as an excuse, when in reality, it is Labour ministers that are championing the cuts. Why have they not supported a welath tax? Why have they not supported cutting the 500k tax-payer salaries paid to the most senior civil servants and personalities in this country? WAKE UP.

    Reply
  • How about testing parents when they go to draw down the allowance – any who are smoking get the cut, any who aren’t get to keep the current rate. It’s a win win situation for all concerned once the long term HSE savings are factored in.

    Reply
  • Yes it should be cut.

    Reply

Add New Comment