Minister for Social Protection Dara Calleary has confirmed that his department is exploring the introduction of a secondary child benefit payment, with the intention of bringing it to Cabinet before Budget 2027, reports RTE.
Mr Calleary highlighted that high energy costs due to poor insulation, along with rising food prices, are key factors contributing to child poverty in households with children.
He said the Government has introduced a "very ambitious" child poverty plan, involving "every single Government department that has a role in this base", reports RTE.
Speaking on RTÉ's This Week, Mr Calleary explained: "It is being published with my department, the Department of Social Protection, but we have a unit now within the Taoiseach's unit.
"Looking at the cross-departmental impact on child poverty and the initiatives we need to take to reduce bills for people ... so they have money to spend on their children and give those children the benefits," reports RTE.
He added that the Government needs to evaluate existing supports alongside the universal Child Benefit Payment.
"We have the child support payment which is paid in addition to child benefit to those on the lowest incomes and we are investing €780 million per annum in the child support payment, it assists about 329,000 children," he said, reports RTE.
He also noted that his department is putting "a lot of work around" the plan to bring in a second-tier child benefit.
Still, Mr Calleary cautioned that such a move would involve "a complete rejig of existing payments".
The estimated cost of introducing the secondary benefit is €772 million, and it's expected to lift 50,000 children out of poverty, reports RTE.
"What I want to make sure, firstly, is that nobody loses out by introducing a new payment and secondly we would have to look at where you would bring in the tiers, the cut-off and ensure the working families who are currently being supported by the working family payment don't lose out either," he said, reports RTE.
He explained that he currently has mechanisms available and remains committed to increasing child benefit payments further, due to their proven impact.
"I want to make sure that it has the kind of effect that we need it to have," he said, and added that those on the lowest incomes and those facing financial hardship "get that permanent security", reports RTE.
"Before we bring that in, I have immediate supports available. I have immediate tools available through the child support payment, through the working family payment. They are my target for investment in the immediate short-term," he added, reports RTE.
When asked why the second-tier benefit has not yet been introduced, Mr Calleary pointed out that many families are already receiving support each week through existing schemes such as the child support payment and working family payment.
Mr Calleary said he remains confident that the secondary child benefit proposal will go before the Government in advance of Budget 2027.
There are approximately 80,000 households in Ireland earning more than €200,000 annually, and many of these also receive child benefit, reports RTE.
Asked about high-income families receiving the benefit, Mr Calleary responded: "You can't make a general statement like that ... you don't know what the circumstances of any particular household is.
"And we have always had a commitment for universal child payment in respect of our commitment as a State over many years to children," he said, reports RTE.
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