CHILD BENEFIT CUTS:CHILD BENEFIT payments will be reduced by €10 per month for first and second children to €140 per month in a cost-saving measure designed to save €149 million for the exchequer.
Benefit payments for a third child will by cut by €20 to €167 per month while parents will receive €177 per month for fourth and subsequent children.
Similar child benefit cuts introduced in last year’s budget were cushioned for families on social welfare or low incomes through increases to two targeted welfare schemes – qualified child increase and family income supplement.
Minister for Social Protection Éamon Ó Cuív said yesterday compensating for the cuts in child benefit in the same way would have cost €50 million.
He said this was ruled out because it would have led to severe cuts elsewhere that would cause “fundamental damage” to the welfare system.
Mr Ó Cuív said all other welfare schemes aimed at helping children at risk of poverty such as: family income supplement; back to school clothing and footwear allowance; domiciliary carer allowance; and the widowed parent grant had been fully maintained.
Minister for Finance Brian Lenihan said the reduction in child benefit rates in Budget 2011 would reduce rates for the first and second child to 2006 levels. The rate for a third child would fall to 2004 levels while the rates for fourth and subsequent children would decline to 2005 levels.
The cuts to child benefit were strongly criticised by children’s charities such as Barnardos.