Use child benefit savings to help struggling families, say rights groups

Children’s rights groups have insisted that any savings made from further cuts to child benefit payments must be ring-fenced for redistribution to struggling families to reduce the number of children at risk of poverty.

Recommendations for reforms to child benefit are due to be brought before the Cabinet today by Minister for Social Protection Joan Burton, with an expert report on the issue expected to be published tomorrow.

It is understood the report proposes retention of the existing system of a universal payment to all families, but with the creation of a two-tier system which would see the current rate reduced and top-up payments to lower-income parents.

However, it is believed the report also considers the possibility of taxing child benefit, although it has ruled out the alternative option of means-testing the payment.

The child benefit rate was cut by €10 in December’s budget to €130 per month for the first two children, and by higher amounts for subsequent children, to achieve annual savings of around €136m.

Recent figures published by the Central Statistics Office indicate that 107,000 children are living in consistent poverty.

The latest proposals for reform of the child benefit system comes as the Children’s Rights Alliance awarded a C grade in its annual report card for government performance on children’s issues, including their rights to education, health, protection from abuse, adequate standards of living, and equality and non-discrimination. The CRA — a coalition of more than 100 child welfare organisations — said the overall C grade represented a slight deterioration in the Government’s performance over 2011, largely due to budgetary cutbacks which adversely affected children and families.

CRA chief executive Tanya Ward said the result was disappointing, given the Government had made some major improvements last year, including passing the children’s rights referendum and overhauling the child protection system.

Ms Ward said harsh measures in the budget would hit the poorest families, who had borne the brunt of the cuts more than any other section of society. The Government was awarded its first-ever A grade for holding the historic referendum last year on children’s rights.