Plans to tax child benefit could cost families up to EUR640 per child, according to figures released by the Department of Finance.

The Department of Social Protection is required to make cuts of around EUR500 million to its annual budget and the Irish Times reports that introducing taxation on child benefit at the current income tax rates would account for approximately 80 per cent of these savings.

Minister for Social Protection Joan Burton will publish a report this month that assesses the issue. The investigation by Ita Morgan is expected to highlight two possible changes to child benefit, taxation and the introduction of means-testing - believed to be favoured by the group and Ms Burton.

However, if taxation is introduced, families that pay income tax at the higher 41 per cent rate would lose EUR640 per child - almost five times as much as the EUR120 cut to child benefit announced in the December 2012 budget.

Those paying the 20 per cent income tax rate would lose out on EUR312 per year.

Written by Donal Walsh.

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