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Social Protection Minister Joan Burton today published the first report of the Advisory Group on Tax and Social Welfare on child and family income support payments.

Welcoming the publication of the report, Minister Burton said:

The importance of child and family income supports is underlined by the fact that in 2013 my Department will spend over €2.8 billion on supports to families and children through payments such as Child Benefit, the Family Income Supplement, qualified child increases on weekly social welfare payments, and the Back to School Clothing and Footwear Allowance. This accounts for around 14 per cent of expenditure on social protection.

I welcome the Group’s firm recommendation that the universal nature of Child Benefit be maintained – namely that payments are provided in respect of all children...This report makes important recommendations on how Child Benefit could be maintained as a universal payment while reforming child and family income supports so as to better target those who need them most.

The report of the Advisory Group was presented to the Minister for Social Protection in 2012 and was subsequently considered by a Ministerial Steering Group comprising Minister Burton, the Minister for Finance, the Minister for Public Expenditure and Reform and the Minister for Children and Youth Affairs.

Ms Ita Mangan, Chair of the Advisory Group noted that while the Group concluded that there is no one perfect method to target child income support payments, there was a strong preference in the Group towards a two-tier child income support payment approach because of its potential to rationalise the overall child income support system while minimising work disincentives.

Under the two-tier payment approach, the Advisory Group suggests rebalancing and integrating child and family income support payments as follows:

• A universal first-tier payment in respect of all children, which would replace the current Child Benefit payment.
• A child income support supplement or second-tier payment for low-income families, which would replace the current Qualified Child Increases components on all Social Protection weekly payments and the Family Income Supplement (FIS).

Commenting on the next steps, Minister Burton said: “The report will contribute to the policy debate on proposals to reform the structure of child and family income support payments, including the balance between income supports and services, such as childcare. Further consideration of the issues involved is required, taking into account developments in terms of future discussions and the budgetary and fiscal situation. To this end and to ensure that the Advisory Group’s report is considered within the broader public debate on this issue, I am proposing that the report be considered by the Joint Oireachtas Committee on Social Protection as part of its future schedule.”

Minister Burton concluded by thanking Ms. Mangan and the members of the Advisory Group for their extensive work in producing this report. The Minister also acknowledged the organisations and individuals who had made submissions to the Advisory Group following the Group’s invitation for submissions in national newspapers at the outset of their work.

The report of the Advisory Group on Tax and Social Welfare on child and family income support payments is available on

.