Child benefit proposals 'flawed'

The National Women's Council of Ireland (NWCI) has criticised proposals to alter child benefit payments, describing them as "…

The National Women's Council of Ireland (NWCI) has criticised proposals to alter child benefit payments, describing them as "fundamentally flawed".

The organisation said the plan to create three different bands for the payments would force women out of the workplace, as it failed to recognise the cost of childcare incurred by families.

"At a time when it is reported that €300 million has been lost in the deal to save Anglo Irish Bank, the obsessive focus by the Government on cutting Child Benefit as if it was the only source of savings at this critical time is unacceptable," said NWCI's head of policy, Orla O’Connor.

Payments currently begin at €166 a month for each of the first two children and €203 for the third and subsequent children.

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Some 600,000 mothers in the State receive the payments directly, with the total cost of child benefit reaching approximately €2.5 billion per annum - about 12 per cent of all social welfare spending in 2009.

The NWCI said the plans, which form part of an attempt to cut public expenditure, would leave women working in the home with less support, and would cause increased financial strain and stress on families where women are the main breadwinners.

"Childcare costs are second to mortgage payments in terms of family expenditure, to consider the incomes of families in relation to cutting Child Benefit without taking this cost into account shows the complete disregard this government has for women, mothers and families," Ms O'Connor said.

"The fact that Child benefit is the only payment that parents have to pay for all of the costs in relation to children is a result of failed Government policy with regard to childcare both inside and outside of the home. The NWCI has long advocated a different approach to establishing a subsidised childcare infrastructure and recognizing the work of mothers in the home on par with other European countries."

Proposals being considered by the Department of Social and Family Affairs include the lower levels of child benefit for higher earners.

It is believed that the basic rate of child benefit will be cut across the board, but those on social welfare and recipients of the Family Income Supplement would receive a “top up”.