Cut in child benefit to hit all after new U-turn

[bluefish]

Apologies if there is already a thread on this.

LOW-income families will bear the brunt of child benefit cuts following another embarrassing Government U-turn.

Instead of means testing child payments as it promised in the Budget, the coalition has now discovered it has no option but to bring in a flat-rate reduction.

It is understood major legal obstacles arose over Finance Minister Brian Lenihan's plan to tax the benefits.

Proceeding with a 10pc flat cut in the rate will mean a drop from €166 to €150 a month for each of the first two children, and from €203 to around €180 for each subsequent child.

For a low-income familywith three children that would mean a reduction of €55 a month and would represent a substantial cut in disposable income.

The decision will further inflame anger at the Government and lead to claims that the most financially vulnerable are bearing an unequal share of the burden.

The Department of Finance last night confirmed it was aware of "legal issues" with both taxing and means-testing of child benefit payments.

However, the Irish Independent has learned the Government will be forced to abandon its plans altogether because of insurmountable legal and logistical difficulties.

Government officials have spent weeks trying to find an alternative to introducing a flat rate cut for all, but to no avail.

One problem is that the Constitution guarantees the State will support families, which is taken to mean all families alike.

Cut in child benefit to hit all after new U-turn - National News, Frontpage - Independent.ie

So FF stoop to a new low.

Hitting the poorest in the country the hardest.

[Decadance]

Nonesense if hiding behind constitutional protection of family as this would mean only married families protected.

[Yaffle]

I think they should consider reducing the benefit by a lot more than 10% but then use the money saved to increase the FIS or other appropriate benefits for those that need it. That way the low income earners won't lose out and may possibly gain at the expense of higher income earners who would have lost out if it was taxed or means tested.

[wysiwyg]

If this becomes common currency before June 5th, then FF are toast. Simple as.

[FutureTaoiseach]

Denied by sources in both Depts according to Newstalk, who cited a named official in their report today.

[Eddiepops]

Yep, this is bollocks. But then it is the Indo, so what were we to expect?

[bluefish]

Yep, this is bollocks. But then it is the Indo, so what were we to expect?

But the government did say they wanted to cut Child Benefits.

If there are legal issues in cutting this for all, will they simply not cut anything, creating a large cut elsewhere? Or will they take the plunge and cut child benefit for all?

[petervalhala]

So FF stoop to a new low.

Hitting the poorest in the country the hardest.

Rubbish, FF were the ones who massively increased it in the first place! Remember in 1997 is was a mere €38.10, now its €166

Trying compare this to €97 a month in the UK for the first child which DECREASES to €64 for each subsequent child

[asset test]

Rubbish, FF were the ones who massively increased it in the first place! Remember in 1997 is was a mere €38.10, now its €166

Trying compare this to €97 a month in the UK for the first child which DECREASES to €64 for each subsequent child

Ah but the recipients in the UK can shop at Sainos and Asda, and have lower everything in comparison to us.

[euroboy]

Rubbish, FF were the ones who massively increased it in the first place! Remember in 1997 is was a mere €38.10, now its €166

Trying compare this to €97 a month in the UK for the first child which DECREASES to €64 for each subsequent child

Yeah, Im puzzled about why child benefit increases per additional child.

Surely, the unit costs of housing, heating, food and clothing falls per extra child.

The first child should be the most expensive, while each extra child should be cheaper to keep.

Irish child benefit has it backwards.