Update

Find out what changes were made to Child Benefit in Budget 2012 in our Budget 2012 Child Benefit update

Further cuts likely to Child Benefit

In Budget 2011, the Government introduced cuts to Child Benefit with a €10 cut across the board, except for the third child for whom Child Benefit was cut €20.  Coming into Budget 2012 even more discussion centres around what should be done with Child Benefit.

Commission on Taxation & Other Views

The Commission on Taxation for Ireland recommended that systems in Social Welfare be developed to the extent that some benefits, such as Child Benefit could be taxed at source.  But we are a long way from that.

TASC, the Irish equality conscious economics group were strangely silent on the topic in their pre budget submission, which if we take it as de facto support for the existing arrangement could have been expressed specifically.

But most other groups are intransigent in their opposition to changes in the current system.

Budget 2012 Rumours

It has been suggested that Child Benefit will be cut in the Budget by €10 per child.  With so many possible cuts been spoken of in the Budget, it is hard to guess if this is likely or not and no clear indication has been given.

But certainly the most controversial rumour surrounding Child Benefit is the proposal that instead of being paid as a cash payment, child benefit is paid by way of vouchers that could be spent in Irish shops.  Those pro this move see it as a way of ensuring that the money is spent in the country.  While those in opposition to vouchers describe it as degrading.

In isolation, I”m not sure how it can be seen as degrading if everyone from Ronan Keating to Miriam O’Callaghan would presumably be spending their vouchers too, but I think the opposition is more against the general principle of vouchers in the welfare system.