Sunday Independent Political Correspondent John Drennan says the government is stepping into dangerous waters with the proposal to tax child benefit as so many families depend on the payments.

The report outlining recommendations on how best to reform child benefit payments is to be brought before the Dail on Tuesday.

The Mangan Report recommends implementing a two tier system or taxing the payments in order to slash €345 million per year of the social welfare bill.

The Social Protection Minister, Joan Burton hinted that her preferred method of reform would be to keep a universal payment but apply a tax to the benefit for higher earning families.