Most claims for foreign national children resident abroad from UK

The majority of foreign nationals claiming child benefit for children abroad are from the UK despite an increase in the number…

The majority of foreign nationals claiming child benefit for children abroad are from the UK despite an increase in the number of applications from eastern Europeans.

The eligibility of accession-country workers to child benefit and the new early childcare supplement for children who are not resident in the State became a hotly debated political issue last month when Fine Gael warned that it could cost the State an extra €150 million.

However, officials at the Department of Social Affairs yesterday said the "vast majority" of 650 payments for children not resident in the State were for families based in the UK or Irish nationals living in Northern Ireland.

Under regulations dating back to the 1970s, migrant employees from any member state can claim child benefit from the EU country in which they work even if their children are living in their home country.

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This figure of 650 may change following an increase in the number of applications from accession-country workers.

The Department of Social Affairs was receiving earlier this year around 100 applications a week from accession-country workers whose children are not resident in the State. This figure has increased to 170 a week since Fine Gael raised the issue.

Minister for Social Affairs Séamus Brennan said yesterday he was "not concerned" at the increase, and that claims for foreign national children resident abroad would be just a fraction of the overall cost of payments to children.

Figures compiled by officials show that out of a total spend of €3.3 billion on child benefit since the accession of the 10 new states to the EU in May 2004, €290 million was paid to foreign national parents. Just €4.3 million of this was paid to children not resident in the State.

The new childcare payment of €1,000 per annum is to be paid only to those already receiving child benefit, and in respect of children under six.

At present department officials estimate that of the budget of €353 million in a full year for the new childcare payment, just half of 1 per cent would be made to children of other EU nationals living in their original state.

They said even if the number doubled the payments would be just a small fraction of the total budget.

Mr Brennan also said EU nationals working here were entitled to child benefit for children living abroad under long-standing arrangements which also benefit Irish families working abroad in other EU states.

He said any attempt to discriminate between Irish and EU workers in the payment of child subsidies would be illegal under EU law.