Tánaiste aims to increase child benefit by €5 in next budget

Tánaiste Joan Burton is seeking an increase of about €5 in child benefit – or €60 a year – as discussions get under way over the Government’s final pre-election budget.

She is also pushing for about 40,000 workers to be taken out of the universal social charge (USC) tax net by raising the entry point at which the charge is levied.

An overall cut to the charge for low-and-middle-income earners is also a possibility, as previously signalled by Taoiseach Enda Kenny and the Tánaiste.

Speaking to The Irish Times, Ms Burton said that having increased child benefit last year by €5, the Government was aiming to do something similar this year.

She cautioned that no decisions have been made over the final shape of the budget and all proposals will be subject to available resources.

“I would like to see an increase [in child benefit] in the same order of last year,” she said.

Paid childcare

“It applies equally to people in and out of work, so it doesn’t impact on the attractiveness of work. It allows families choices in relation to whether or not some of it would be used for the general cost of children or for paid childcare. I’m anxious to improve it again.”

Ms Burton made the comments ahead of controversial changes to welfare benefits for lone parents which come into force on Thursday.

Under the changes, single parents in receipt of social welfare will be required to seek employment or training as soon as their youngest child reaches seven years of age.

Transitional benefit

They will also move from the one-parent family payment to a new transitional benefit.

The Government says the move is aimed at enabling one-parent families move out of welfare dependency, but campaigners say as many as one in three of the 30,000 lone parents who are working part-time will lose out.

Ms Burton said budget proposals such as an increase in child benefit and changes to the USC would improve the income of many lone parents.

Under the USC plans, tens of thousands of workers would no longer pay the charge by raising the entry point from €12,000.

“Reforms to the USC will be targeted at low-and-middle-incomes,” Ms Burton said.