Budget 2025: Government will not introduce second-tier of Child Benefit

By: irishmirror.ie

Sep 07 2024
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Budget 2025: Government will n

The Government is to resist calls to introduce a “second tier” means-tested Child Benefit payment, the Irish Mirror has learned

This is despite former Taoiseach Leo Varadkar saying last year it was worthy of consideration and would be examined by Social Protection Minister Heather Humphreys in advance of Budget 2025.

A report published earlier this week by the Economic and Social Research Institute (ESRI) found that 230,000 children in Ireland are estimated to experience material deprivation. This means that they are unable to afford two or more items from a list of ten essential items.

The report’s author, Dr Barra Roantree of Trinity College, suggested that additional measures, such as a second tier of child benefit targeted at low-income families, should be introduced. The ESRI recommended the same measure in September.

However, the Irish Mirror understands that the Government will not introduce a second tier of means-tested child benefit. One Government source stated that the measures would “take months” to introduce and result in “winners and losers”.

They also argued that Child Benefit is a universal payment and there are already “targeted measures” for some children. This includes the Qualified Child Allowance, which is paid to some on social welfare payments. Last September, then-Taoiseach Leo Vardakar told the Seanad that the idea of a second tier of Child Benefit was under consideration and would be examined.

“I have asked Minister Humphreys to examine the ESRI proposal to introduce a means-tested second-tier of child benefit,” the former Fine Gael leader said.

“Such a change would not be possible to introduce by January 2024. Further work will have to be undertaken to ensure no unintended consequences, as identified by the ESRI itself. But the proposal has real merit, and I look forward to understanding more about how it could be implemented.”

It is now expected that the Children’s Allowance payment will be increased for all parents in Budget 2025, which will be announced by Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe on October 1.

The €140 payment has not increased since 2011. However, the age of eligibility has risen, with parents now able to claim for children aged 18 who are still in secondary school. Tánaiste Micheál Martin confirmed to the Irish Daily Mail this week that Child Benefit will “definitely” be increased.

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