Parents in negative equity may avoid cut

Parents with negative equity on their mortgages could be exempt from any cuts to child benefit, one Fine Gael backbencher has suggested.

Dublin South Central TD Catherine Byrne said the Government should be “very cautious” about cuts to child benefit to ensure it was not taken away from those who need it.

Fine Gael TDs are expected to raise concerns at tomorrow’s meeting of the parliamentary party about proposed changes to the allowance being considered by Social Protection Minister Joan Burton.

An advisory group has recommended a cut in the basic rate of child benefit from €140 to €100 on a phased basis, while providing a top-up payment for families on low incomes or social welfare.

“We are all concerned about it,” said Cork North-West TD Áine Collins, who said there had been a strong reaction to the proposals from “middle Ireland”, which was worried about the budget. “[These people] are struggling as it is to keep bills paid and their heads above water.”

Ms Burton is under pressure to save €540m from the €20.5bn social welfare budget. About €2.1bn of this goes on child benefit.