Written answers
Tuesday, 8 July 2025
Department of Employment Affairs and Social Protection
Social Welfare Rates
John Paul O'Shea (Cork North-West, Fine Gael)
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588. To ask the Minister for Employment Affairs and Social Protection his views on the ESRI's proposal for a second tier of child benefit; his views on whether the ESRI's proposal could give rise to work disincentives; and if he will make a statement on the matter. [37529/25]
John Paul O'Shea (Cork North-West, Fine Gael)
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589. To ask the Minister for Employment Affairs and Social Protection if some families currently in receipt of the working family payment would receive a lower payment under the ESRI proposal for a second tier of child benefit; if his Department has any estimates on the number of families who could see their payment reduced under this proposal; and if he will make a statement on the matter. [37530/25]
John Paul O'Shea (Cork North-West, Fine Gael)
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590. To ask the Minister for Employment Affairs and Social Protection his views on whether changes to expand the working family payment and the child support payment could be more effective at reducing child poverty than introducing a second tier of child benefit; if his Department has carried out any analysis in this regard; and if he will make a statement on the matter. [37531/25]
Dara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 588 to 590, inclusive, together.
Child Benefit is a monthly payment to families with children up to the age of 16 years. 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 is estimated at over €2.2 billion in 2025.
It is important to note that, in addition to Child Benefit, families on low incomes may be able to avail of other social welfare payments:
- the Child Support Payment with primary social welfare payments, €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.
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 such as the Working Family Payment and Child Support Payment.
My Department is progressing this work, having regard to the available body of evidence, including the work undertaken previously by the ESRI, The National Economic and Social Council and the Commission on Taxation and Welfare.
The ESRI proposal involves an amalgamation of the Working Family Payment with the Child Support Payment, the removal of core conditions for the Working Family Payment, as well as allowing those on payments such as Jobseeker's Allowance to claim Working Family Payment in addition to their core weekly payment. According to the ESRI, the measure would cost some €770m a year and would involve very large increases in weekly payment amounts for some cohorts. The ESRI analysis states that, under its proposal, 100,000 children would see losses in household income while 233,000 would experience gains. However, my Department does not have sufficient details of the ESRI analysis to definitively quantify the number of individuals affected and their associated schemes.
Though described as a Child Benefit proposal, the ESRI proposal would involve a fundamental reengineering of working age supports along the lines of the proposed Working Age Payment. As the ESRI acknowledges, further work is required to understand the impacts this change would have on work incentives and the labour market, as well as implications for the core one-person-one-payment rule of the social welfare system.
My Department has engaged with the ESRI on the proposal. It will input to my Department's considerations on second tier Child Benefit; however, there are a number of possible approaches to reduce child poverty. This work is ongoing and will be considered as part of proposed Budget 2026 measures.
I trust this clarifies the matter for the Deputy.
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