The Government and Fine Gael have clashed over claims that migrant workers' entitlement to the new childcare payment could see welfare claims soar to €150 million more than forecast in the Budget, writes Carl O'Brien, Social Affairs Correspondent.
Under EU law employees from any member state can claim child benefit in the country they are working in, even if their children are living in their home country.
However, it has emerged that the new €1,000 childcare payment for under-sixes may also be paid automatically to such children, even though it was intended to help subsidise childcare costs in Ireland.
Last night, Senator Brian Hayes of Fine Gael said even if one third of the estimated 166,000 accession country workers registered to work here claimed the child benefit and new childcare payment, the extra cost to the State could reach €150 million.
He said: "A failure to address this anomaly will only further serve to expose the careless manner in which this Government approaches budgetary matters and will leave the taxpayer to foot a bill, the size of which can only be guessed at."
However, Minister of State with responsibility for Children Brian Lenihan said Budget day calculations were accurate and accused Fine Gael of playing the race card.
"This is an ugly outbreak of Fine Gael racism," Mr Lenihan told The Irish Times. "The figures in the Budget were based on the total number of recipients of child benefit, which includes migrant workers."
The Attorney General advised the Cabinet earlier this month that any attempt to discriminate between Irish and EU workers in the payment of child subsidies could be illegal.
There is a substantial difference in the size of child benefit payments between Ireland and the accession countries.
In Ireland, the child benefit payment for a first child will be €150 a month from next April. In Poland, however, the child benefit is just €11 a month and is means-tested.
While in excess of 160,000 people from accession countries have been issued PPS numbers since May 2004, the number of workers still residing here is likely to be smaller.
At present just 300 accession state workers are receiving the child benefit in Ireland for children living in their home country, while a further 2,000 claims are being processed.
The Department of Social and Family Affairs estimates it is receiving around 60 child benefit claims a week from accession country workers. However, publicity over eligibility for child benefit and the new childcare subsidy could see a sudden surge in demand in applications among migrant workers.