Government Targets Child Poverty with New Payments for Parents in Cost of Living Relief Plan

As child poverty continues to be a pressing issue, the Irish government is preparing to roll out new measures aimed at supporting parents. With a focus on low-income households, the expansion of existing payments like the Working Family Payment and Child Support Payment is a key part of the plan.

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Child poverty new payments
Child poverty new payments. credit : shutterstock | en.Econostrum.info - United Kingdom

In a bid to reduce child poverty and support low-income families, the Irish government is preparing to introduce a range of new measures in Budget 2026. These include the expansion of financial support for parents, focusing on targeted payments aimed at alleviating the pressures faced by working families. 

With just months to go before the budget announcement, the Department of Social Protection is working on proposals that could help to address longstanding issues of inequality and child poverty.

New Payments to Address Child Poverty

The Irish government is taking decisive steps to bolster support for parents with children in low-income households. According to Minister for Social Protection, Dara Calleary, the government is considering expanding existing payment schemes, including the Working Family Payment and Child Support Payment

These measures are part of a broader effort to target families most at risk of poverty. The minister made it clear that while changes are on the horizon, they will not result in lower payments for anyone currently benefiting from these systems.

The government is also looking at a two-tier system for Child Benefit, which would see higher payments directed at poorer families. While the current Child Benefit of €140 per child is universal, a top-up for families with three or more children may soon be introduced to encourage larger families. 

However, the introduction of such a system would require careful consideration due to its complexity, with a focus on ensuring that the new structure does not inadvertently leave any families worse off.

Working Family Payment and Child Support Payment Expansion

According to a recent discussion in the Dáil, a proposal to merge the Working Family Payment with the Child Support Payment has been floated. However, Calleary warned that such a move could risk reducing payments for certain families if not carefully managed. 

As a result, any adjustments will be designed with the goal of ensuring that recipients are not worse off. 

In the meantime, increases to the Child Support Payment have already been implemented, with those supporting children aged 12 and over now receiving €62 per week—up from €54—while families with children under 12 will receive €50 per week, up from €46.

The weekly income threshold for the Working Family Payment has also been raised by €60, specifically targeting low-income workers. These changes are part of a broader strategy to alleviate financial hardship and help families cover the cost of living, particularly in light of inflationary pressures on households across the country.

Two-Tier Child Benefit System: A Complex Issue

The potential introduction of a two-tier Child Benefit system has generated much debate. Under this proposed model, a flat payment of €140 per child would remain in place for all families, regardless of income. 

However, wealthier families might see a reduction in their overall benefits, while those in lower income brackets could receive additional support. The complexity of implementing such a system requires a detailed analysis to ensure fairness and to avoid any unintended consequences.

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