Child Welfare changes..

nesf

From: http://www.timesonline.co.uk/tol/news/world/ireland/article6927052.ece

It looks like a 20% cut in Child Welfare coupled with payments to low income families to make sure they receive the same money as before the cut.

Seems like a reasonable proposal.

Nevyn

http://www.timesonline.co.uk/tol/news/world/ireland/article6927052.ece

The government is planning to cut child benefit payments by up to 20% in order to save €300m in Budget 2010, but social welfare recipients and low-income earners will get top-up payments to keep them on the present rate.

Senior officials in the Department of Social Welfare and Revenue are also finalising plans to identify the country’s “highest earners”, likely to be defined as those above €100,000 a year, for a third, lower rate of child benefit payment. This group could be paid as little as half the existing monthly rate of €166 per child, senior government sources have indicated. Payments rise to €203 per month for a third or subsequent child.

The Green party is pressing for up to €1 billion to be raised in extra taxation, despite the insistence of Brian Lenihan, the finance minister, that he will make most of the necessary €4 billion in savings from spending cuts.

Dan Boyle, the Green’s finance spokesman, said his party was pushing for up to €600m to be raised through a combination of cutting tax relief and personal credits, and a widening of the tax bands; €400m would be raised from the carbon tax.

No decisions have been taken yet and ministers will use a full-day cabinet meeting today to consider their options. Senior government sources say that cuts to core public sector pay rates seem unavoidable, despite the trade unions’ campaign against them. As 200,000 public sector union members prepare for a one-day strike on Tuesday, government officials are examining plans for a three-tiered pay cut.

One source said this could become a 2% cut for those earning less than €50,000-€60,000 a year, a 4% cut for those up to €100,000 a year, and a cut of 6% or more for those above that amount.

Plans to implement a flat-rate cut in child benefit for all but low earners have advanced significantly after the government concluded it was too expensive, complex and potentially unfair either to means-test or tax the existing payments to 600,000 mothers. Roughly one third of payments are made to families on social welfare or low income.

Mary Hanafin, the social affairs minister, has made it clear she is opposed to the complete withdrawal of the payment from any recipient. “It [has been] a universal payment since 1944 and I am not sure I would take it completely from any mother,” she said on RTE’s Frontline show.

It will be possible for the social welfare department to identify high earners because Revenue officials routinely exchange information with it. Revenue, in its role as collection agent of PRSI, provides details of gross income and PRSI paid by PAYE taxpayers. This is used by the department to determine individuals’ benefit entitlements.

Boyle said while his party accepted that most of the savings would have to be made from cuts in public spending, he believed a considerable portion should be raised through extra taxation. “We would be looking for somewhere between €800m and €1 billion of the savings to be made from taxation,” he said.

“We think there is room for other systematic changes which could raise a considerable amount of revenue, for example cutting tax reliefs, reducing personal credits and widening the tax bands.”

simu

Could be worse.

jenzz

yes indeed could be far worse - the only concern i have with this is the amount of time at present it takes to means test any payment associated with social welfare. & everything has to be means tested - do we have the resources to do all this administration when in the next breath they are telling us the social welfare sytem is under too much pressure. Are the most needy going to have to wait 8-12 weeks then for this to be processed?

nesf

jenzz wrote: »

yes indeed could be far worse - the only concern i have with this is the amount of time at present it takes to means test any payment associated with social welfare. & everything has to be means tested - do we have the resources to do all this administration when in the next breath they are telling us the social welfare sytem is under too much pressure. Are the most needy going to have to wait 8-12 weeks then for this to be processed?

It may be implemented so the payment would be tied to some other income based payment or scheme, so any parent qualifying for X scheme automatically gets the payment without any need for a separate administration system to be set up. They should have something like this in place with the Family Income Supplement anyway and so on.

Eoineo

Family Income Supplement is only granted if one or both parents are working and their earnings come under a limit. It could possibly be fairer to award the extra payment to all families in receipt of a medical card?

We all have to take a hit unfortunately, it's a pity we have to wait and listen/read to masses of speculation for the next 2 weeks.

jenzz

It is the hard part sitting & waiting. Having played the social welfare "game "over the last few months I have found how incredibly wasteful of time & energy the system is & in mine & your eyes it is far more clever or resourceful to tag payments together - Its a pity our senior management cant see it that way. The waste is shameful. I have spent hours & hours of time trying to just wade into the system & I cant for the love of God figure out how this department can blatently be such a wastage. Its a system thats just in knots & every knot is costing more & more money to unravel. Every time they deal with me for something that should have been efficiently dealt with before costs more money to the government. Simply cut the wastage, not the kiddies allowance, not the teachers,not the garda overtime, none of these things need cutting if they cut out all the waste! They would save themselves billions.

My heart does go out to people who may be classsed as" well enough off" to be hit by the 20%. Its this group the nonrich & nonpoor who will hurt the worst. Im poor so I feel lucky in a way. Thats the first time in a long time ive been able to say IM LUCKY for being poor.But it really could be far far worse.