New tier of child benefit could be introduced in October budget

A new tier of child benefit designed to lift tens of thousands of children out of poverty is to be considered in advance of Budget 2026.

Taoiseach Micheál Martin said “nothing was off the table” in terms of using social welfare payments to reduce the number of children in Ireland in consistent poverty.

Mr Martin used his speech at the national economic dialogue in Dublin Castle today to set out his stall in advance of this year’s budget. He flagged child poverty as a Government priority and said he told his Cabinet to come up with ideas that will “make the difference to the most vulnerable families and children”.

An annual report from the Children’s Rights Alliance published last week, showed that the number of children in consistent poverty in Ireland had increased by more than 45,000 in one year, bringing the total to over 100,000. Children are the most likely group in society to experience poverty.

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Mr Martin said despite previous Government investments, the most recent figures show an unwelcome increase in persistent child poverty.

“We need to make sure that this increase turns out to be a temporary spike out of line with the overall trend,” he said.

“Therefore, for Budget 2026, I’ve asked my ministerial colleagues to plan and to come forward with measures that will really make the difference to the most vulnerable families and children and to target resources appropriately.”

Last week, a report by the Economic and Social Research Institute (ESRI) said that introducing a new “second-tier” child benefit payment of €285 a month would lift 55,000 children out of poverty.

Asked about including such a proposal in the upcoming budget, Mr Martin said the Government will be “examining all aspects of that.”

“Nothing is off the table,” he said.

“There’s a wide menu there that we can choose from to target resources to meaningfully impact on child poverty. That’s not just in terms of income supports but also in terms of other initiatives in education.”

According to the ESRI, the effective top-up of the existing €140 a month child benefit scheme would cost the State about €800 million a year.

Mr Martin also flagged that the budget will include a new Delivering Equality of Opportunity in Schools (Deis) Plus education scheme, which would give enhanced resources to schools most acutely affected by disadvantage.

“Critically, it will work towards a more flexible system of supports so that a school can receive the right support at the right time to assist children and young people most in need,” Mr Martin said.