Burton favours reforming child benefit by taxing higher earners

Joan Burton, the social protection minister, has said reform of child benefit should be looked at by way of taxation, rather than excluding high-earner families.

She was responding to a poll which showed support for the means testing of child benefit.

Ms Burton said the poll indicated support for the universal payment in the absence of a provision for children in our tax code.

She said: “Another way of approaching this will be to tax higher earners in respect of child benefit. That is not possible in terms of the systems at the moment, but... it is something that can be worked on.

“I have a report from the advisory group which I have to bring to Cabinet. So Cabinet have made no decisions in relation to this as yet,” she said, “but I am working particularly closely with my colleague the Minister for Children Frances Fitzgerald.”

Ms Burton stressed the need to protect low-paid jobs.

“What we have to be careful of in any changes is that we don’t disimprove the incentive to work and that’s why I’m saying if there was something like a two-tier payment where you have a strong universal payment and then you have a secondary payment as a possibility, that has to be available not just to be people on a social welfare income, but to people on low pay who are in work, because we have to keep the incentive to work.

“The reforms that are being suggested from different sources; I think all of them recognise the importance of the universal payment, and also the importance of not in any way damaging the incentive to go out to work.”

Elsewhere, in the first of a series of meetings around the country, Ms Burton outlined to employers in Limerick various services offered by her department to assist them in developing their businesses and supporting workers.

“Employers will now be supported by a dedicated team of activation managers from my department located throughout the country.”

They will operate out of Intreo offices.

Ms Burton said this year her department’s Jobs Ireland Service has advertised 50,000 job opportunities, representing a diverse range of sectors and occupations.

She said: “From a survey of employers who utilise the service, over 89% positively rated it, with 82% successfully filling at least one of the vacancies by the time of the survey.”

She said the Intreo offices would build links with local and national employers.