IBEC proposes radical change to child benefit payments

The Irish Business and Employers Confederation (IBEC) has today called for a radical new approach to how child benefit payments are made.

The employers body has unveiled its pre-Budget submission, which it says is aimed at creating economic growth.

Among its proposals are a number of measures to increase consumer spending, including the introduction of a new child benefit payment card, which would encourage recipients to spend rather than save the money.

If people opted instead to receive a cash payment instead, it would be 25% less than the full amount.

IBEC's chief economist Fergal O'Brien says the scheme offers a number of benefits.

"It would still give the exact same, and even better, payments to people who need it through the payment card model," he said.

"It would save the Exchequer money because not everyone would opt for the payment card model.

"Those people who are taking the payment card model will actually be better off, their money would go further because the retailers signing up for such a scheme could give them some discounts.

"And the technology is already here for this - any shop in the country that has a Laser card machine could use one of these payment cards."