Second tier of child benefit proposed to replace two social welfare entitlements
A new targeted second tier of child benefit could replace other social welfare entitlements like the Working Family Payment, as the Government calls for submissions from the public.Social protection minister Dara Calleary launched the consultation process for a new targeted child payment on Tuesday.Documents published outline a possible approach for such a payment, which would replace the existing Working Family Payment and Child Support Payment.The consultation proposes two ways to qualify for the payment, including if a family with children is already in receipt of a social welfare payment which is means tested. The second method would see the income of a family assessed against an income threshold, which would be based on the number of children they have. Families below that threshold would be entitled to the second tier of child benefit.“The rate of payment they receive would depend on how close their income is to the income threshold, similar to the approach used in the Working Family Payment,” the document states.The consultation says there would need to be “careful consideration” required for certain groups, including lone-parent families. Payments would be provided per child, with the rates based on the age of each child.
The document says there would be a higher rate of payment for children over the age of 12, given the increased costs of raising older children.Maximum rates of payment would be provided to households in receipt of social welfare, or who are under the income threshold. This threshold would increase depending on the number of children in the household and their age.However, the document says payments would not stop immediately after a family’s income exceeds the threshold.“Instead, their rate would gradually decrease as their income increases, until it eventually reduces to zero. This prevents families from experiencing a sudden drop in income and allows them to retain some level of support until they are financially stronger,” it says.Transition to new payment For households currently accessing either the Working Family Payment or Child Support Payment, the consultation suggests they would receive the second tier of child benefit as a replacement.“The rate of the new payment would be set such that existing customers would receive the same or similar amount as the Child Support Payment,” it says.Specifically for households receiving the Working Family Payment, which has higher payment rates than the Child Support Payment, the document says they may require supplemental income supports.This could be done through reforms to the existing Jobseekers Allowance.One Government source said the move towards a second tier of child benefit would be a longer-term process and it is unlikely to be done in October’s budget.They said Mr Calleary’s focus in Budget 2027 will be on setting up a new cost-of-disability payment.It is expected that further discussions on a new cost-of-disability payment will take place next week, with hopes progress could be made on its design.Currently, child benefit is paid out at a rate of €140 per child per month, with payments continuing until a child reaches 16.Payments will still be made to 16, 17 and 18-year-olds if they are still in full-time education or training, or if they have a disability and are unable to support themselves.
Tadgh McNally is a political reporter with the Irish Examiner
