Taoiseach Leo Varadkar has confirmed that the Government is considering introducing a second tier of child benefit.
According to a recent study by the Economic Social Research Institute (ESRI), a second rate of child benefit for the poorest households would require funding of €700 million a year. The report also stated that a new tier would approximately help 40,000 children to escape the depths of poverty.
Following on from the ESRI’s findings earlier this month, the Taosieach has asked the Minister for Social Protection, Heather Humphreys, if she would consider the proposal. However, Mr Varadkar clarified that it would not be implemented in time for Budget 2024, the details of which are due to be announced on October 10.
“I've asked Minister Humphreys to examine the ESRI proposal to introduce a means tested second tier of child benefit,” the Taosieach explained to the Seanad earlier this morning.
“Such a change would not be possible to introduce in 2024. So further work will have to be undertaken to ensure no unintended consequences occur as identified by ESRI itself, but the proposal has real merit, and I look forward to understanding more about how it might be implemented,” he added.
This is not the first time that the Government has looked into the possibility of introducing a second tier for child benefit. The Department of Social Protection previously considered it in 2011, but the idea was later ruled out.
Regarding her thoughts on the child benefit scheme, Minister Humphreys has indicated in the past that she would like the benefit to be widened to include young adults who are over 18 but are still in secondary school.
In their study, the ESRI noted that a more targeted tier of the €140 payment would allow over 100,000 families to receive the help they need.
The changes to child benefit have already been recommended by the Commission on Taxation and Welfare, as well as the National and Economic Social Council.
