Second tier of child benefit will not be rolled out as part of Budget 2026, says Calleary
A second tier of child benefit will not be rolled out as part of next month’s budget, social protection minister Dara Calleary has said.There have been calls for the second tier to be introduced for several years, and there is a commitment in the programme for government to roll it out.The plan to introduce a second tier of child benefit would see a higher monthly payment given to parents on low incomes or in instances where children were at risk of poverty. The existing universal child benefit payment would remain in place for other children.However, Mr Calleary stated that the amount of work involved means it will not be ready in time for the budget on October 7.There might, he told RTÉ Radio 1’s This Week, be proposals in place for Budget 2027, which will be announced next year.“We just need to look at the supports already in place in addition to the universal child benefit,” he said.“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, though, 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.“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 hours either.“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 to Government at some stage.” Mr Calleary stated that there is a hope that a proposal for the second tier of child benefit will be completed in advance of Budget 2027. He said it will “absolutely” be progressed.The comments came just days after Mr Martin indicated that it would be introduced.The Taoiseach said the plan is currently being developed, adding that he met Mr Calleary on Wednesday night to discuss how it might work.“We will do something on that, or equivalent to that [second tier of child benefit]," Mr Martin said. “There are complexities in terms of getting such a system up in place, so we don’t want anybody to lose out.” Mr Martin said further work was required on the proposal, noting that a new system would need to be created to oversee the second-tier payment.
