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16 Sept 2025
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16 Sept 2025
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There has been widespread disappointment across Ireland this week after it was confirmed the suggested second-tier child benefit will be scrapped from Budget 2026.
Minister for Social Protection Dara Calleary confirmed the news yesterday on RTÉ Radio One's This Week, despite Taoiseach Micheál Martin suggesting last week that it would go ahead.
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The second tier system would see parents on low incomes receive a higher monthly payment while the existing child benefit payment of €140 would stay in place for other parents.
There have been calls for this system to be introduced for a number of years and while there is a commitment in the programme for government to roll it out, Mr Calleary said that the amount of work involved has resulted in it not being ready in time for Budget 2026, which will take place on October 7.
"We just need to look at the supports already in place in addition to the universal child benefit," said Mr Calleary, "We have the child support payments, which is paid in addition to child benefit to those on the lowest incomes.
"We're investing €780m per annum in the child support payment. It assists about 329,000 children. I have that available to me immediately. A second tier of child payment is something that we are looking at within the department. My officials are doing a lot of work on it.
"The proposals around it, thought, would involve a complete rejig of existing payments. What I want to make sure is, firstly, that nobody loses out by introducing a new payment.
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"Secondly, we have to look at where you would bring in the tiers, where you bring in the cut-off, and ensure the working families who are currently being supported by the working family payment don't lose hour either," he added.
"I have tools available to me that I'm focused on. I'm focused on the child support payment and on further increasing that.
"That work [on the second tier of child benefit] won't be done [in time for next month's budget], but we are working on it with a view to bringing a proposal at some stage."
Micheál Martin had said the second tier plan is "currently being developed" but that there will be an "equivalent" of such a system will be in place.
"We will do something on that, or equivalent to that [second tier of child benefit]," said the Taoiseach. "There are complexities in terms of getting such a system up in place, so we don't want anybody to lost out.
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