Angry reaction to child benefit cuts

FAMILY support groups reacted angrily last night at the cut to child benefit which will mean a €16 fall in monthly payments per child.

The National Women’s Council of Ireland (NWCI), which had led a coalition of interest groups against the expected reduction, said the cuts meant mothers would have the bear the brunt of the budgetary measures at a time when childcare costs continue to rise.

Other groups also criticised the move, although the Government said social welfare recipients would be protected from the cuts, which will mean child benefit payments returning to 2006 levels. From January 1 next year, the payments will be €150 per child for first and second child and €187 per child for third and subsequent children.

Finance Minister Brian Lenihan said social welfare dependent families would be fully compensated by increasing the qualified child allowance by €3.80 per week, while the new income limits for the Family Income Supplement (FIS) was also likely to help families in employment.

But NWCI director Susan McKay said: “Child benefit is a crucial part of family income – many women will be left wondering if they can afford to continue to work, given that childcare costs continue to rise.”

The opposition also weighed in, with Fine Gael front bench spokesman Denis Naughten claiming the €221 million cut to child benefit would hit every family in Ireland. “Too many families depend on child benefit, which has been cut by €16 per child, to make ends meet, for the Government to slash the rate so indiscriminately,” he said.

Jillian van Turnhout, chief executive, Children’s Rights Alliance, said the child benefit cut was “very significant” and that the Budget measures overall weighed very heavily on children.

Minister Hanafin and Finance Minister Brian Lenihan said means testing of child benefit was not possible due to difficulties such as identifying cohabiting couples under the existing tax system.

In his speech Minister Lenihan said child benefit payments had increased by more than 330% in the past 12 years.

The Government argues that social welfare recipients will be protected from the child benefit cut, due to the qualified child allowance rising by €3.80 to €29.80 a week, and the €6 increase per week per child for the Family Income Supplement (FIS) for working families on low incomes.

But Candy Murphy, head of policy in One Family, said having people depending on the FIS could lead to families falling into a “poverty trap”.

“The take-up for FIS is very bad – you cannot get it if you are self-employed or unless you are working 19 hours a week.”

But Minister Hanafin said that while she did not want to cut child benefit, it was a better option than taxing it.

“It was not possible to avoid it because then the burden would have fallen on other areas,” she said.