Two-tier child benefit system would save €200m a year, Cabinet told

The introduction of a two- tier system of child benefit payments, with top-ups for low-income families, would save the exchequer €200m a year and reduce poverty levels for children, a report says.

The report on reforming child benefit, which was brought to Cabinet by Social Protection Minister Joan Burton yesterday, concluded that the taxation of the allowance or a two-tier payment system were the two most feasible options for change.

It says that universal child benefit payments should remain, but that a two-tier system would see amounts increase for lower-income families and fall for middle- to upper-income earners.