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Dublin: 10 °C Tuesday 21 May, 2013

Report recommends child benefit be cut to about €100 per month

A so-called “two tier” child benefit system, recommended by an advisory group to the Social Protection Minister, would see child benefit payments cut to about €100 per month.

Image: Sasko Lazarov/Photocall Ireland

A REPORT COMPILED by an advisory group to the Social Protection Minister has recommended a so-called “two tier” child benefit system, which would see child benefit payments cut to about €100 per month.

The report, seen by RTÉ’s The Week in Politics programme, recommends that the universal payment be cut and “top up” payments made to low-income families – a move which is expected to save up to €200 million annually.

Currently, child benefit is paid monthly to all parents for each child under the age of 18 who is living with and being supported by them.

The Public Expenditure Minister Brendan Howlin suggested in last year’s Budget that rates would be standardised to €140 per month per child over a two-year period – however this would have yielded an estimated saving of just €43 million.

Read more about child benefit payments>

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Comments (87 Comments)

  • Maria 01/10/12 #

    What about the “new poor”? People who are still working but after having suffered pay cuts are struggling to pay the mortgages on their negative equity homes, are suffering the expenses associated with working and are paying the equivalent of another mortgage in crèche fees – and that’s if they only have one child. It’s getting to the point that only the very rich and the poor will be able to afford to have children. There is no fair way of cutting child benefit.

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  • Maria 01/10/12 #

    Middle income Ireland suffers again.

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  • This will squeeze the middle again.

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    • True, it wont affect the dole’ies , theyll just find some scam to claim more welfare money to keep them stocked up on fags and cans elsewhere.

      Atleast it might stop them popping out kids to get money.

      Reply
    • Not all parents spend their CB on fags and booze in fact some of us gave up our social lives and fags when we had kids you cannot tar every parent with the same brush. Most families are genuinley struggling although I agree SOME pubs and nightclubs do their best business on CB night. But for some its the only night every month those parents get out. They spend most if not all their income every other day keeping the roof over their kids heads and feeding them and in my house paying for their groups and clubs they go to every week.

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    • I’d ignore Stephen. It’s pretty clear he doesn’t have a clue what he is talking about.

      Reply
  • OU812 01/10/12 #

    1,000 million euro is being paid to bond holders today. €1,000,000,000. But that’s ok, the kids are gonna pay for it.

    Reply
    • Mick B 01/10/12 #

      That payment was kept quiet in the main stream media wasn’t it?!!!

      Reply
    • Mick, it seems to me that all of these payments go under the radar of the mainstream media. The Journal covered maybe the first two and then went silent on them as well. I wonder why it’s not considered important despite the fact that people are suffering left right and center (excluding notably the political class) to pay these outlandish sums.

      Reply
  • If this happened I would have to quit work because there is no way we could afford child care without having the allowance. We both work but pay more than the amount for an average mortgage in child care for 2 kids!

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  • cut all pensions for the lst govt and current…..and all perks….watch the money roll in..slash and burn

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  • mike 01/10/12 #

    JP . I said full time creche place. Your reply was a typical Loud Left standard reply. Our local community creche has 6 places taken up by a family who abuse the welfare system. 12 kids and neither parent has ever had a job. and yes they so sit around all day drinking and engaging in anti social behaviour in our estate. But If anyone criticizes them there is always a militant left voice box shouting to defend them.

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    • Again not all are like those in your community, love your choice of wording “militant voice”…it’s not a war?
      I work, paid for child care and now pay any fees that my school going daughter needs paying, I know the system isn’t perfect but it’s to easy to bash those on welfare and stereotype people.

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    • JP not every generalisation is untrue! The issue here is with the ‘cradle to grave’ welfare recipients! You are angry for some reason so why not try see the other sides argument before commenting again! Much of why you say is true but you are only seeing your own side of the story!

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    • ‘Much of what you say’

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    • My own side of the story? No I see both sides, I know people abuse the system, but I also know that many don’t want to be part of the welfare system at all. I’m not angry at all, I just don’t like when the generalisation is made.
      This is about children’s allowance being cut, an allowance that parents employed and unemployed receive but reading comments on here you’d be led to believe it was a “bad parent, drug abusing, sponger allowance” and that’s just not the case.
      As I’ve said I’m not on welfare so I’ve every reason to dislike spongers as much as the rest of you but I just don’t agree with tarring everyone with the same brush.
      Unemployment benefit and children’s allowance are two different things.

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  • Thinking of taking money off children to pay for the mistakes of the grown-ups – from a coalition of Fine Gael and Fine Gael lite.

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    • Children don’t have votes though ( although I know their parents do)

      Pensioners do have votes That’s why taking it off Pensioners is unthinkable. Pensioners are more likely to vote too.

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  • I agree with all the comments that only the “poor” and the rich can have kids….recently went to view a community creche…when I told them I was working they told me that full time places were for those on social welfare!!!
    If the government choose to cut child benefit why don’t they bring in tax credits for parents who are working and using crèches…means 2 parents can work, pay tax, prsi and creating more jobs in the childcare sector.
    I want to work and enjoy work, like many mothers, but am faced with the prospect of having to give up when I have a 2nd child…yet I see neighbours in council houses, havent worked in years having 4 and 5 children.

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    • mike 01/10/12 #

      Why do unemployed parent’s need full time creche for their kids.

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    • @ Mike… Maybe they are training in college or on a scheme or working part time..unemployed doesn’t automatically mean they sit around all day in their pj’s, smoking and drinking the children’s allowance, I can’t believe there are still people who think the majority of people on welfare are just useless spongers just out to bleed the system. Many of these “poor” as you guys put it are so because of the “rich”.

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    • Agree.I cannot afford to work. Despite two professional qualifications, my husband and I had to decide which job to ax once we had children; he makes more so I stay home. Our children do not enter childcare until the early childhood education year. This Government is creating a very unhealthy and unbalanced society in which more and more women will be forced out of the workplaces; this is a massive marker of societal breakdown on many levels.

      The reality is we, the middle classes, have been squeezed to the point where there is nothing left to give. We are an easy target; working middle classes often do not have the same ability to mobilize and demonstrate – we are not represented in Gov as a result.

      A cut in CB would be extremely detrimental for our family. Our CB goes to pay for food, heating, and the very basics for our children.

      This Government needs a severe wakeup call. Vote with your feet folks!

      Reply
  • I saw a heroin addict last week walking with a new born baby in a pram out on a road nearly killing the child.

    These people should be paid to be sterilised like in America does the government really think people like this spend child benefit on their children ?

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    • That’s a common occurrence in the area of Dublin I unfortunately have to work in. The sight of a child less than a year old lying in a pram while it’s two parents can’t keep their eyes open cos they are off their face is sadly all too common as well on the Luas.

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    • The problem there, is the heroin, not the CB. There needs to be a grown-up solution to heroin addicts. Some sort of treatment centre. Politicians should meet with people who have dealt with addicts, understand heroin and it’s effects. Instead they pursue the same policies which haven’t worked and will never work.

      Our political leaders display a lack of imagination, stubbornness and ignorance. Throw in some corruption and you have the Irish political system.

      Speaking of which, is Cowen still in college in the US?

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    • clara 01/10/12 #

      These people , my god wat do you think that these addicts are animals listen love I heard some crap today but my god that takes the biscuit .. Wake up will ya this is the real world , there’s not even enough beds to help these ill people to detox and you wat to have them neutered like dogs … I always say walk a mile in someone’s shoes before you judge .

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  • Cutting the Child Benefit by E40 per person could push those who are already struggling with financial problems over the edge and for those that are well off, it will make no difference.

    Child Benefit should not be paid to people who do not need it and a ‘blanket cutting’ of all Child Benefit is the easy way out for the Government!

    There are a lot of well paid and rich people who do not need this benefit and a system should be worked out so that they would not be paid it, but the Government do not seem to want to bring about such a change!
    Why?

    In any case., there is a simple way of ensuring that this cutting of benefits does not happen and it is as follows;
    If you feel strongly that the cutting of child benefit is wrong and that it will have an adverse effect on your child and on your finances, simply Email, Phone or tell your local Government TD., or Minister, that should this decrease in child benefit happen, that you might have a problem voting for them again!

    If enough people do this, I bet you will not see this cutting of child benefit coming into force, because all politicians want to protect their seats in the Dáil.

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  • Typical of this government to take from the most vulnerable yet again! Isn’t it today that another €1billion is handed over to unsecured & anonymous bond holders? My wife & I recently welcomed our 2nd child however she was made redundant before her maternity leave started so in 6 months time I have no idea what we’re going to do to be honest. On a side note I’m surprised that the “ye shouldn’t have kids often can’t afford them etc” brigade aren’t on here commenting. Must be too early for them or they all start their high flying well paid jobs a lot earlier than the rest of us mortals.

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  • Of course the poor can afford to have children cos they get every hand possible leaving them in a position not having to work. Its doesn’t pay to be honest and hard working in this country.

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  • mike 01/10/12 #

    JP. your right in a lot of what you say But the blanket defence of all welfare recipients is falling the legitimate recipient’s. My vision is this.. Reward those who contribute to society, support those who cannot and punish those who won’t. Currently our system is working the opposite way and needs to be changed.

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  • why not apply this principle to taxation in stead of what is meant to a universal payment to children.

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  • Ah yes, pay the bondholders and starve the children! What have we become, Yes men for Europe!

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  • That’s way to logical and simply for the Irish government to implement. ^^

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  • This comment will be unpopular but it may solve something. Teachers work until 3 or 4 o clock etc. they are always ridiculed about this and the defence is they do work in the evenings to prepare. Can this work not be carried out at school on a longer day allowing kids to stay at school and do their homework etc. This could be a good compromise to lowering teachers pay etc. this solves the child minding issue many parents have, gives teachers a window to prepare, allows parents work a normal day (pay tax etc) and parents can spend quality time with children as they have homework done.

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  • I think it is time that middle Ireland stands up to this government. When are they going to realise that you cannot just judge someone’s income just by numbers on a page anymore. It is people’s outgoings that are causing the problems and whether people agree or not many people are in extreme debt due to the recession. We are now facing a situation where if only one parent works, it will not be enough to sustain a family but in the first five years of the child’s life if both parents work, the childcare costs are crippling. The most sensible and obvious thing to do then would be to award tax credits for childcare as people who are not working would not benefit from this and it might make it possible and affordable for both parents to work. The average PAYE worker whether they are public or private sector is by far the worst hit in this recession and all universal cuts and charges affect them the most. In the public system, you now have a situation where retired staff are earning more than working people who are the parents and mortgage holders this is not and cannot be right. The government has to address it. Middle Ireland needs to learn from the older people, and bombard the government with their issues and complaints.

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    • Barry 01/10/12 #

      People’s outgoings are an issue alright,

      HOWEVER, some people will claim they are broke yet when you look at their outgoings they have Sky plus Sky Sports and Movie Channels or HD packages (hardly a requirement to have to life), they will see nothing about spending 80-100e at the weekend on drink, they might spend 40-50 a week on fags.

      More often then not people can make cut backs which would make getting by week to week much more do-able but people choose not to,

      I know of many a person on min wage who chooses to have Sky with the HD add-on, sky on its own with just a basic plan is around the 22e a month mark so it all adds up!

      Before people complain about the fact that people need things to enjoy in their life, there’s plenty of things you can enjoy in your life and vegging infront of a tv night after night isn’t enjoying life….its wasting your life

      Reply
    • Barry I have the full sky package but I dont go out it cost me €90 per month but it would cost that and more for myself and my husband to have 1 night out together. I dont think changing your sky package will help you pay your mortgage. However if CB does get cut my sky will be cut to basic channells and my kids would still have to sacrifice their social lives by way of giving up scouts, dance classes etc. The only little outlet they have to look forward to. So now they have nowhere to go no kids channells on tv so they become lazy layabout playing consoles all day in the winter and hanging around the streets getting in trouble in the better weather. There is a bigger picture here and the reality is NO government cannot analyse every household outgoings they can however analyse the income of every household. They could stop CB for people earning over a certain amount and then if the individual feels due to their necessary outgoings that they need the payment reinstated they could apply for it. The majority wont if they are honest because the majority can manage without it. I know families where the mother is at home and they still pay a nanny to help. Now sorry get a job and pay a creche or mind the kids yourself if you need the CB. For some people the TV is their social life sad and all as that sounds.

      Reply
    • Barry 01/10/12 #

      Jenny Weight, you make it sound like the world was a hole and full of troubled kids before the advent of Sky,

      There’s tonnes of things your kids can do other then watching tv each evening that costs nothing or very little to do, there’s also tonnes you can do to spend time with your husband.

      By your example back before the advent of Sky tv and kids tv channels all the kids in Ireland must have been getting in to trouble on the streets of Ireland…..such nonsense.

      Sad reflection on society

      Reply
  • Barry 01/10/12 #

    Why isn’t child benefit means tested?

    It seems insane that you could have a couple earning 100k between them and they get child benefit, if they can’t get by during a year on 100k without child benefit then they seriously need to look at what they are spending their money on!

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  • I can’t believe that the wealthy here get CB, just like the poor, working class and middle class. I suppose they use it to purchase a decent bottle of wine, or one expensive cigar.

    The government honestly have no clue, no imagination. Their big plan to squeeze some more money out of it’s people was to introduce a house tax and water tax. What’s next, air tax, tax the path outside my home, or perhaps tax my body. ‘Asleep at the wheel’ sums them up, in my opinion.

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    • I suppose the reason that children’s allowance isn’t means tested is the same reason it was originally paid out to mothers. At the time the father would have almost always been the only breadwinner in a household, and if he drank, gambled or otherwise wasted the money, no matter how much he earned, the kids went without. The idea of children’s allowance was that there would be a guaranteed income stream going to mothers for their children.

      Now, of course, there’s far more mothers working, and we all know that either parent can neglect their child. But that’s the original rationale behind the lack of means testing. As for whether it should be means tested… I reckon that if they start means testing it the top end receiving it is likely to be set lower than any of us would like.

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  • When I see the likes of Greece on the news in uproar over the cuts being made to their country and how it will affect their lives,I do be thinking “good on ye” but I do often wonder why the good ppl of Ireland sit back and just let changes happen. Too complacent…in fact I’d go so far to say the ppl of this country would do well under communism.!!!

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  • ROBERTO 01/10/12 #

    What about that one billion Mr Noonan?

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  • I have to contest the statement that community childcare places are reserved for the unemployed. Having worked in community childcare and administered the schemes I can say that the places are equally open to all and that it is only the reduction in fees that are reserved for people on social welfare payments, be it carers allowance, medical card holders or people on fis or whatever the current guidelines are. Any working person is equally allowed to use the service. Perhaps someone here either misheard what they were told or is disgruntled about their local place being full up or not qualifying for the reduction in fees and is misrepresenting the sector as a way to strengthen the argument that people on social welfare have all the pieces of the pie.

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  • we have 5 children and our cb covers our esb bills, phone bills, doctor fee at 50euro a pop. drugs payment scheme. car tax and insurance for 2 cars, our wages only cover shopping, the roof over our head and fuel for the cars so my husband can work and i can bring my kids to school. so if de government cut this money it Will mean either my husband give up work or i keep my kids home from school. cause in reality we need esb, we live in de country so we need a phone and we need food. i can assure you neither of us drink or smoke and its not fair to penalise those of us that are just trying to live.

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  • Why not cut the TDS expenses to €100 a month, fuking disgraceful like trying to take every penny off of already struggling families.

    They are claiming over €50,000 a year when their already on a salary of over €100,000 for what????

    Yet every time they get the chance their cutting our money down bit by bit but its alrite so long as they swan around without a care in the world.

    A joke of a government!

    I mean enda Kenny spent 25000 e in a pub on “expenses” in one night. Give the citizens of Ireland €25000 nd I guarantee it wouldn’t be wasted down the pub.

    And if we don’t get these people out now and change the way the system works, once their there over 2 years they can also claim pensions of over 100,000 even though the pension age is 65.

    The hole system needs reform nd first thing is for these shower of hypocrites to be told to F**k off as they done nothing but gave us empty promises, then done nothing but introduced a load of taxes charges etc etc.

    A working Irish citizen lives off approx €35,000 a year and ye have the cheek to tell us that this budget will be the toughest ever, we,re hearing the same line since 2008 but we don’t see ye taking any payouts.

    The wages and expenses of the dail are absolutely fukin ridiculous, I wouldn’t mind if they were actuali working for the people but their NOT, why don’t they pay the debts of the banks themselves their making 3 times more than what we do.

    Yet we are just leaving them come at us with everything and bearing the brunt of it.

    They will have us back in the times of the famine while they swan around with their ridiculous wages even though it is not the people of Ireland,s debt.

    They make me sick.

    http://www.change.org/petitions/supporting-the-irish-nation-step-down-from-government

    Reply
  • Remember when Richard Tol wrote a report for the ESRI which suggests there is too little incentive to work for those with children? Instead of recognising the truth of the report and grasping the obvious problems for the economy, the govt quickly slapped down the report and had it pulled from the ESRI web site.

    Now, with the numbers at work shrinking continually, unemployment only kept ‘stable’ at a crippling rate of 15% through mass emigration, the morons in this government decide to take even more measures to squeeze tax out of the working people of Ireland, making life on the dole more and more attractive.

    Keep our outrageous public sector pay, keep paying the bondholders, keep paying generous social welfare for life, and try and get the middle class to pay for it all.

    Reply
    • Richard Tol did not published or release a report. An unfinished working paper was released as a “work-in-Progress” and was misrepresented as a published paper.

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    • A family entirely on social welfare can have an income that would put a working family on to the top ratree of income tax.

      Tol’s paper was a worrying paper but he stood over it and there is an undeniable truth that low paid work is less attractive than welfare. these proposals will exacerbate that problem.

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    • At least you’re calling it a paper now. It wasn’t a published report, it wasn’t quashed by the government, and the ESRI never withdrew it as a report, because it wasn’t a report. Of course Tol stood by it, he hadn’t anything to lose, and he could make himself out to be a people’s champion. To get a proper analysis of the validity of his paper, you have to view the opinions if his peers; other professional economists. The criticism of the paper were based on methodology issues, not on political ones. If you wish to use this paper as propaganda, then fine, but admit that that is what you are doing. But the fact of the matter is that there was no political scandal or whitewash connected to the paper, it was simply a badly-handled embarrassment for the ESRI. Red faces but no factual scandal.

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  • Does child allowance ever reach the child? In my experience I normally see it go towards other things – please don’t crucify me – I’m just curious.

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    • I know mine does reach the child in that it pays for a roof over our heads and buys food. If it’s cut I don’t know what will happen..:-(
      And no we are not on welfare and would not want to swap places with anyone who is. The super wealthy are doing a good job of turning the ‘middle’ and ‘low’ against each other, aren’t they?

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    • @ Michael….. Are you sure you see Child benefit go on other things?? Can you see the money we put into our children every day? Clothing,food heating, bringing them to activity centres buying them a few sweets after school, but them a DVD or a book once in a while. This is what us parents strive to give our children so if u do see parents spending children’s allowance on other things just think of all the money we have put into those children for the rest of the month. Did it ever cross your mind that we gave up something on Friday to bring our children to mcDonalds knowing the children’s allowance was coming on Tuesday!!

      Reply
    • I have 3 children and my child allowance always goes on paying bills, feeding and clothing the kids, school books, school trips etc…. I know very few people that don’t use the money for keeping a roof over their kids heads and food in the belly

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    • Michael just curious? How do you identify the allowance ‘goes to other things’ does a light light up or does a siren go off? I’m curious how you can identify the child allowance goes on other things with such certainty?

      Reply
  • @ Michael. It’s easy to tell you have no children yourself do you have any idea of the cost of children? Just because you see someone going out buying something “not child related” on children’s allowance day does not mean the money is squandered and children dong see it, it mean that for the rest of the month Parents are struggling to cover all the bills and look after their children and give them the best life they can and then on that 1 day that there is an extra bit of money the parents can buy something they have sacrificed all month so their children can have clothes food heat and maybe a treat here and there! Means testing this allowance will only crucify the middle class who are already struggling

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  • It’s about time we took to the streets and march. Taxing children to pay the mistakes of bankers in criminal. I have 3 children, both myself and husband are working flat out and o depend greatly on child benefit to help me pay for my children’s needs. We don’t drink, smoke and have been hit with cut after cut. Tax after tax. We can’t sustain anything further.

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  • Thinking of taking money off children to make up for the mistakes of the growing-ups. This from a coalition of Fine Gael and Fine Gael lite. Shame!

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  • Sorry that posted twice 

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  • Another pinch to the middle class, whens it going to stop..we have 5 more budgets with future cuts! Everyone will be on the poverty line before long! Taking away child benifits only hurts the children! Any family who is lucky to have one income at this point is getting higher electricity, gas, tax, USC, property tax, and water bills.. it sure does narrow the gap to maintainin the standard of care you provide to your children…excluding the the child benifit! Another blow to hard working families of Ireland.. This is about the children and not public pay, bondholders etc! Protect our childrens rights.. well that’s just nonsense..EU/Banks/Gov mafia/monoploy fecking it up!

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  • johnny 01/10/12 #

    Serious question,whats a low income family? Is it a family on social welfare and all the added perks (and i dont mean the “new unemployed who are out of work because of the recession) or is it a husband and wife wife both working with a total gross income of ?70000?

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  • Just tax it, for goodness sake.

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  • I wonder how much this ”advisory group” gets paid for their services?

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  • Ken Coz 01/10/12 #

    About time

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  • Iii

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  • Isn’t it ironic that the government are in the process of bringing into legislation the new children’s act to protect the future of children, yet they are now considering on cutting child benefit which is a necessity for all of us who use this to help clothe, protect and feed our kids. And the government wonder why the population is confused by the mixed messages which are transmitted from Dáil Éireann! The estimated saving is going to have far reaching effects on families than just financial implications alone.

    Reply

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