Child Benefit: More Expensive Miscalculations

[St Disibod]

On RTÉ Six-One News today:

RTÉ News has learned that the Early Childcare Allowance is to be paid to the children of all workers from EU countries living here, whether or not their children are resident in Ireland.

As a result, Fine Gael says the Government may have underestimated the cost of the allowance by as much as €150m.

The allowance of €1,000 per year, given to parents of all children under six, was announced in the budget in December, and was to be paid from the middle of this year to help parents defray the high cost of childcare here.

The Government says the payments to children not resident here will not significantly add to the cost of the scheme.

Does anyone think this is a good idea? Surely this is something that should be tied up.

[MichaelHennigan]

It's another joke that the penny has only now dropped at the Dept of Finance.

Some red-meat for the anti-immigration posters to chew on

In low wage countries like Poland and Latvia, it will be quite an entitlement to get €1,000 per child.

Just remember, other EU taxpayers are paying about $2bn to support our farmers.

We will likely see lots more of this. How can we complain having got loot of more than €30 billion since 1973.

[smiffy]

Does anyone think this is a good idea? Surely this is something that should be tied up.

Well, it's not a matter of it being a 'good idea' or not. It's simply a consequence of the relevant EU Regulations, which also provides for child benefit to be paid to people working in the State, even if the children themselves are not. It should hardly be that much of a shock.

How do you think it should be 'tied up'?

[smiffy]

It's another joke that the penny has only now dropped at the Dept of Finance.

What makes you think it's only been discovered now? Child benefit is already payable on the same basis (and is actually significantly more than this payment).

[eurocrat]

Seems like sloppy work in the Civil Service allright.

[MichaelHennigan]

It's another joke that the penny has only now dropped at the Dept of Finance.

What makes you think it's only been discovered now? Child benefit is already payable on the same basis (and is actually significantly more than this payment).

Smiffy - RTE News and FG think so and I don't recall any reference to non-resident children of EU workers when Cowen presented it in the budget.

[smiffy]

Smiffy - RTE News and FG think so and I don't recall any reference to non-resident children of EU workers when Cowen presented it in the budget.

Perhaps it was in the broadcast, but it certainly doesn't say that on the RTE website.

Fine Gael think so, but, then, Fine Gael would think so. Have they got anything to back up their E150m figure?

On the point about the Budget, I believe Child Benefit was also increased. Were non-resident children mentioned there as well? The fact that they weren't included in the speech doesn't mean that no one knew about them.

[St Disibod]

How do you think it should be 'tied up'?

Child-benefit is designed as a subsidy. If it can be used to pay the entire costs of having a child with a profit margin to boot- well, it shouldn't take too long to connect up the dots.

Currently EU workers have to have two years under their belt to be entitled to child-benefit. The RTÉ report does not make reference to this, but I assume that remains the case.

I'm not entirely sure how to tie it up, but I would suggest that it should be paid according to the costs involved in maintaining a child- therefore at a greatly reduced rate in Eastern Europe. This would also lead to higher payments in Dublin than some rural areas, that may be a good idea or alternatively, the payment division could be drawn across state boundaries.

[eurocrat]

Currently EU workers have to have two years under their belt to be entitled to child-benefit. The RTÉ report does not make reference to this, but I assume that remains the case.

I don't see the problem then. If they have worked here for 2 years it seems they are entitled to the money.

Smiffy, I believe FG got this figure from Phil Hogan's backside. Usually a reliable source.

[MichaelHennigan]

The RTE report says that: The Government says the payments to children not resident here will not significantly add to the cost of the scheme.

This surely implies that the additional cost wasn't budgeted for?