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Seanad
‹ Order of Business

One-parent family tax credit

Summary

Senator Landy objects to the proposed €1,650 cut in the one-parent family tax credit and the associated higher-rate taxation.

I add my voice to that of Senator Darragh O'Brien in expressing sympathy to the family of Councillor Gary Wyse, whom I knew quite well. He always played the ball, and did not play the man, in politics. It is something I admired about him.

I join Senator Ivana Bacik and Senator Jim D'Arcy who raised it yesterday on the one-parent family tax credit issue. The proposal in the budget is to cut the tax credit by €1,650. Those who are affected by this cut will also see €4,000 more of their income being taxed at 41% instead of the normal 20%. The loss of both of these will mean a net loss in real terms of up to €50 per week.

On top of this, many parents in this position must pay maintenance. We all will have received correspondence over the past 48 hours on this matter, in particular, some of them showing maintenance of up to €900 per month. In a recent study in Trinity College Dublin, it was accepted that 97% of separation cases deemed the mother to be the primary carer. In real terms, this affects males more than females, but this is not the full picture. All in the Chamber will know separated couples. Many fathers take children for full weekends, pay the cost of weekend activities, pay the cost of family events, such as birthdays, holidays, Christmas time, etc., and on top of this they face this cut. This needs to be revisited. I ask the Leader to request the Minister for Finance, in the Finance Bill, to have another look at this and, above all else, to bring fairness into the mix.

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