THE Minister for Social Protection has confirmed his department is “working on” a targeted new Child Benefit payment as part of efforts to tackle child poverty.
However, Dara Calleary warned that an “unintended consequence” of a new system of child income supports could result in a “lower payment than they are currently getting”.
The Fianna Fail TD said the Department of Social Protection has to ensure “people cannot lose out” on the supports they are benefiting from now.
When asked by Independent TD Barry Heneghan for an update on the Department of Social Protection’s exploration of the introduction of a targeted second-tier Child Benefit payment, Calleary said addressing child poverty is a “key priority” for the Government.
He added: “That is why the programme for Government includes a range of measures to support children and their families.
“One such commitment is to explore a targeted child benefit payment and examine the interaction this would have with existing targeted supports to reduce child poverty.
“Existing supports include the working family payment and the child support payment.”
The proposed Child Benefit shake-up would lift some 55,000 children out of income poverty and 25,000 from consistent poverty, according to a recent report from the Economic and Social Research Institute.
Calleary said the Department of Social Protection is examining a targeted second-tier of the Child Benefit payment but added that it is a “complex issue”.
He explained: “Táimid ag obair ar an two-tier payment. We are looking at that but there is quite a lot of work involved and it is a complex issue to examine.”
And Calleary cited a targeted increase in the one-parent family payment and the jobseeker’s transitional payment in Budget 2025 as previous efforts to tackle child poverty.
He added: “The weekly rate of the child support payment, which is very important in this space, increased by €8 to €62 per week for those aged 12 years and over and by €4 to €50 for under-12s.
“There is also a €60 increase in the weekly income threshold for the working family payment, particularly targeting low income workers.
“The child support payment and the working family payment are particularly targeted and focused. I am very conscious that we have a lot of work to do on child poverty.”
‘UNINTENDED CONSEQUENCES’ FEAR
Child Benefit is a universal payment, meaning Irish parents can receive the cash regardless of their income and PRSI record up until a child is 18.
A “second tier” boost would allow lower-income families to top up the existing €140-a-month benefit which is currently paid out to around 650,000 Irish families.
The current cash boost has risen by less than €10 per payment over the last two decades and has seen no increases in 10 years.
Calleary said the Department of Social Protection needs to work “collectively” with other Government Departments to ensure there are no “unintended consequences” as a result of the payment.
WHAT IS CHILD BENEFIT & WHO QUALIFIES?
CHILD Benefit is a monthly payment to families with children up to the age of 16.
The payment continues to be paid in respect of children until their nineteenth birthday where they are in full-time education or have a disability.
To get Child Benefit, you must be living in Ireland and meet the Habitual Residence Condition
Child Benefit is €140 a month for each child.
It is a ‘universal’ payment, meaning parents can get it regardless of their income and PRSI record.
The Department of Social Protection pays Child Benefit to the child’s mother or stepmother.
However, if you are the child’s father or stepfather, you can get the payment if the child does not live with their mother or step-mother.
If you are caring for a child who is not living with their parents, or not being maintained by their parents, you may get Child Benefit.
If your child lives between two separate households, the DSP pays Child Benefit to the parent who lives with the child most of the time.
If the child lives an equal amount of time with each parent, the mother gets Child Benefit.
The social welfare boost is paid in respect of almost 1.3 million children.
Minister for Social Protection Dara Calleary said expenditure on the scheme in the current year is estimated at more than €2.2 billion.
He explained: “The work of the Department is to help those who are struggling.
“To give the Deputy a sense of the complexity of this, one of the considerations in the ESRI proposal was to amalgamate the working family payment with the child support payment but that would result in people losing out on what they are getting at the moment.
“If we are to do this, people cannot lose out. We have to look at expanding the working family payment and the child support payment as part of targeted measures.
‘NOTHING OFF THE TABLE’
“Anything we do in this space needs to be targeted and focused on those on low incomes, particularly workers.
“We have to ensure that people do not get a lower payment under a new system than they are currently getting.
“That could be an unintended consequence of some of the work we have seen today.”
Calleary vowed that any changes made to the social welfare system will be targeted and “focused on those most at risk” of poverty and those in consistent poverty.
Taoiseach Micheal Martin earlier this month confirmed the government will be “examining all aspects” of a second tier rate of the €140 social welfare payment.
He said: “I have a unit within the Department that is focusing on this issue and I’ve already spoken to Minister for Social Protection Dara Calleary on this.
“Nothing is off the table. There is a wide menu of options to choose from to target resources to meaningfully impact on the child poverty situation.”
