FF: Low income earners would lose out from child benefit proposal

The Minister for Social Protection Joan Burton has said she has made no decision on the findings of a report which recommends a two-tier payment system for child benefit.

FF:  Low income earners would lose out from child benefit proposal

The Minister for Social Protection Joan Burton has said she has made no decision on the findings of a report which recommends a two-tier payment system for child benefit.

The Mangan Report, which was published today, recommends a two-tier payments system rather than taxation.

Only those earning less than €25,000 a year will be automatically entitled to the maximum payment.

Fianna Fáil is urging the Minister to reject the report, saying that taxing high earners is fairer.

Ms Burton said final decision will rest with the Government.

She said: "I haven't made any decisions whatsoever, what I am doing and what I have done is I am looking at the report.

"But what is more important is that all my colleagues across government have to look at the report."

However, Fianna Fáil's Willie O'Dea has said the Government should tax high earners instead of taking away child benefit.

Mr O'Dea said introducing the new two-tier system would not work.

He said: "My approach to this is, to implement this would require about 500 extra public servants.

"It is an administrative quagmire. It would result in middle-income people, and people in quite low ranges of income as well, actually getting less Child Benefit."

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