Barry Heneghan (Dublin Bay North, Independent)
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91. To ask the Minister for Employment Affairs and Social Protection if he will provide an update on the progress made by his Department in exploring the introduction of a targeted second-tier child benefit payment for low-income families in light of recent reports highlighting a significant rise in child poverty; and if he will make a statement on the matter. [33150/25]

Barry Heneghan (Dublin Bay North, Independent)
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Will the Minister provide an update on the Department's consideration of a second-tier child benefit scheme? Research by the Economic and Social Research Institute, ESRI, and Social Justice Ireland shows a that growing group of families are experiencing real deprivation despite being just above the income thresholds for most supports. A targeted measure like this could be transformative. Is it being actively considered by the Department?

Dara Calleary (Mayo, Fianna Fail)
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Mar is eol an Teachta, 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. It is paid in respect of almost 1.3 million children. Expenditure on the scheme in the current year is estimated at more than €2.2 billion. In addition to child benefit, families on low incomes may be able to avail of: other social welfare payments, such as the child support payment with primary social welfare payments, which is €62 per week for those aged 12 and over, and €50 per week for under-12s; the working family payment for low-paid employees with children; and the back-to-school clothing and footwear allowance. These schemes provide targeted assistance that is directly linked to household income and thereby support low-income families with children.

Addressing child poverty is a key priority for the Government. 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. We are progressing this work and have regard to a wide body of evidence, including the work undertaken previously by the ESRI and what was contained in the presentation it made to the Oireachtas committee yesterday. We are also looking at work done by the National Economic and Social Council and the Commission on Taxation and Welfare. We will be considering all this work in the context, not only of budget 2026, but of our revised child poverty target.

Barry Heneghan (Dublin Bay North, Independent)
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Gabhaim buíochas leis an Aire. Aontaím leis.

Child benefit already plays a vital role, but recent estimates are that between 150,000 to 230,000 children are experiencing poverty and we now have clear evidence that a large number of families are still being left behind by this threshold. There is a major impact on these families. They are still working hard, but they are struggling with the cost of living.

Will the Department examine a second tier payment for low- and middle-income families? Once one factors in rent and the extra costs that come with raising a child with any additional needs, it becomes clear that income alone is not the full picture. We are seeing a real squeeze on households that do not qualify for means-tested supports but are far from financially secure. A second tier of child benefit would go directly to where the pressure was most intense and help to close the gap in a fair and targeted way.

Dara Calleary (Mayo, Fianna Fail)
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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. In the meantime, budget 2025 had targeted increases in the one-parent family payment and the jobseeker's transitional payment, which increased by €12 per week. 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. We discussed it in the context of an earlier question and the measures we are taking in that space.

Barry Heneghan (Dublin Bay North, Independent)
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I welcome the fact that the Department is looking at that. Budget 2026 should be focused on that but a second tier payment should not replace what we already have. We need to build on it. It would target families facing higher costs while protecting the certainty and simplicity of universal child benefit. There is an opportunity to act on this evidence. The system works well for many but the people whose doors I am knocking on are struggling. This is a chance to make child income supports fairer and more effective for those who need them most. At the same time, we need to focus on those people across the board, not just in terms of the Department of Social Protection. There are going to be huge issues coming into the winter. We do not know what will happen in the Middle East. There may be increases in fuel and other costs. The Department should look at this to help the people who are struggling the most.

Dara Calleary (Mayo, Fianna Fail)
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That is our intention. 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. 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. Whatever we do will be targeted and focused on those most at risk of poverty and those in consistent poverty. I welcome the Deputy's acknowledgement that there are other Departments involved in this effort as well. We need to work on it collectively.