Campaigners criticise plan to tax child benefit

CAMPAIGNERS say proposals to tax child benefit could force families into poverty and that the Government should instead target tax breaks for the rich.

Social Protection Minister Joan Burton has been told that a tax across the board on the €2.1 billion spend on child benefit next year could see the Government take in €300 million.

As revealed in the Irish Examiner yesterday, the measure being considered by Ms Burton could be frustrated by legal challenges and problems in assessing families for the tax. The move is being considered by a special advisory group looking at taxation and social welfare, which is set to make recommendations to the minister next month ahead of the budget.

However, the Irish National Organisation of the Unemployed said that generous tax breaks afforded to the more well-off in society should be stamped out instead of child benefit.

Head of policy Bríd O’Brien said: “They need to look at other ways of going at the tax system, from higher earners and look at the overall system and broaden the tax base. This should include tackling tax breaks that favour the better off and generating income from that.

“They should leave child benefit full stop, either cutting or taxing it.”

Social Justice Ireland met members of the troika yesterday, telling them there was no justification for cutting or taxing child benefit.

Meanwhile, Barnardos chief executive Fergus Finlay last night said that matching income records with claims under the new tax would be difficult.

“It would be the fairest thing to do but impossible. There are women in homes who have never had a PRSI number,” he said.

“A more realistic system would be reducing benefits but offering top-up payments for the less well off.”