Ireland: Child welfare cut in budget flagged

A €10 cut to child benefit is expected to be announced in the upcoming budget. Some 600,000 households receive the universal rate which will fall from €140 to €130 in a measure that is expected to save the State €138 million in a full year and is likely to be the biggest single cut in social protection.

The Cabinet has been meeting this week to discuss next Wednesday’s budget.

A report commissioned by the Department of Health suggests introducing a “payroll tax” to fund increased health spending.

“A new source of statutory revenue could be introduced, for example a payroll tax earmarked for health to supplement general revenues,” the report says.

It also recommends hikes on alcohol and the creation of “sin taxes” on certain foods. The report justifies these taxes on health grounds, adding that they would result in reduced consumption and increased tax revenue.

- irishtimes.com