Little-known entitlement takes centre stage

Controversy over workers from EU countries being eligible for child benefit has shed light on a right many did not know about…

Controversy over workers from EU countries being eligible for child benefit has shed light on a right many did not know about, writes Carl O'Brien, Social Affairs Correspondent.

Despite exaggerated figures and distorted arguments, the row over migrant workers' entitlements has at least provided some much-needed clarity on what EU workers can legitimately claim from the State in the upbringing of their children.

Under regulations dating back to 1971, migrant employees from any member state can claim child benefit from the EU country in which they work, even if their children are living in their home country.

The introduction of the new €1,000 childcare subsidy for under-sixes, which will be paid automatically alongside child benefit, has sharpened focus on the payment, who it will benefit, and how much it will cost the State.

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Migrant workers from EU states will be able to receive both child benefit (around €150 a month in Ireland) and the new childcare subsidy (€1,000 annually, or €83 a month).

There are various ways in which a worker can claim the benefit. They may choose to receive the child benefit in full, or as a "top-up" if there is an equivalent payment but at a lower rate in their country of origin.

In Poland, for example, child benefit is just €11 a month; in Latvia it is €9; in Lithuania it stands at around €27, but varies depending on income; and in Slovenia it is worth between €16 and €90, depending on income.

In the past, this has benefited Irish people who emigrated to other EU states, such as the UK, that had more generous social welfare systems than we had in this country.

However, recent benefit rate increases here, EU enlargement, and net immigration have reversed that effect, according to the Government.

Migrant EU workers may apply to the Department of Social and Family Affairs to apply for the child benefit and childcare subsidy immediately, although payment of the €1,000 childcare subsidy will not begin until the middle of this year.

The applicant must be working, or self-employed, in order to receive the benefit. Therefore, the Government insists, it will not operate as a draw for people who wish to benefit from social assistance here.

The department requests the children's birth certificates and an Irish employer's statement confirming the person is working and paying social insurance.

Officials in Ireland then communicate with authorities in the relevant EU state to assess how much is due to be paid, taking into account the employment status of the other parent.

The Department of Social and Family Affairs currently pays approximately 125 supplements in respect of children resident abroad where a parent is employed in Ireland, according to new figures released yesterday, and is currently facing a backlog of 2,000 claims.

The unknown factor is how many applicants will seek to obtain the benefit now that it has been widely publicised.

While Fine Gael has claimed it could cost the State €150 million, this is speculation.

It is worth noting that this year the State will spend more than €2 billion on child benefit and a further €265 million on the childcare subsidy.

Even a major increase in the rate of claims of child benefit and the new subsidy is likely to be just a fraction of how much the State benefits in tax paid by migrant workers.