Savings on child benefit must be invested into childcare

Published: Tuesday, February 19, 2013

In response to the launch of the report of the Advisory Group on Tax and Social Welfare, the National Women's Council of Ireland (NWCI) welcomes the maintenance of a universal payment to all families but calls on the government to make at least 60% of the payment universal and invest savings on child benefit into childcare.

Orla O'Connor, Director of the National Women's Council said,

'The NWCI welcomes the maintenance of a universal payment to all families. A universal payment is an important acknowledgement that the State needs to support the care of all children.'

The proportionality of universality to top-up has yet to be decided, though Ita Mangan, Chair of the Advisory Group suggested it may be 40% universal payment and 60% payment.

Orla O'Connor stated, 'The NWCI would like to see that proportion reversed and at least 60% of the payment to be made universal'.

The report recommends that top-up payment will be reduced at a rate of 20% should the income of the family go over a threshold of earnings yet to be decided.

Ann Irwin, Policy Officer with the NWCI said,

'The NWCI would be concerned that this would act as major disincentive to families, particularly women, to take up employment or indeed to take up better paid positions within employment. What we need to be doing is supporting movement to employment rather than penalising it'.

Ms O'Connor concluded,

'€210 million has already been saved from the child benefit budget as a result of a reduction in the rates over the past two budgets. Any further savings must be invested in early childhood education, childcare and other services that are of benefit to children and families and we would also like to see commitments from the Government and the Department of Social Protection that this will be done'.

ENDS/

For more information, please contact Silke Paasche, Communications Officer, National Women's Council of Ireland, Tel. 085 858 9104.