Minister for Social Protection Joan Burton said she would like to see the debate on the Mangan report include a discussion on how income supports and services might be balanced to achieve better child-poverty outcomes.

In the same vein, the Government response to this issue would have to be multifaceted, addressing more than just the cash payment approach. It would also have to take into consideration the fact that significant savings had already been made to the child benefit budget, in particular.

The impact of various pressures on families would have to be borne in mind, she said. She was acutely aware that many families on middle incomes were struggling, particularly because of crippling mortgages.

There was a cohort of such people in the 35-50 age group, many of whom had several children and had bought homes at the height of the boom, and for whom child benefit was a very important source of cash.

There was a need for an extensive debate on the issues in the report and those related to it. She had asked the senior assistant secretary in charge of operations in her department to commission a report on how reforms in this area could be implemented and the timeline involved. Ms Burton said it was her absolute conviction that Child Benefit must be retained as a universal payment. The role that services might play in improving outcomes for children was another crucial consideration.

Fidelma Healy-Eames (FG) noted that the Minister had acknowledged the middle classes were being hit.

Whatever system was established to replace the current child-benefit arrangements must afford recognition to those who had bought their own homes and there must be allowable essential deductions for “things like ESB, food”.