Child-related benefits keep over 150,000 children out of poverty, ESRI report finds
Child-related benefits lift an estimated 157,000 children out of income poverty and 94,000 out of consistent poverty.
But 165,000 children (13.9%) are at risk of poverty in 2025, a new report from the Economic and Social Research Institute (ESRI) also found.
Without in-cash benefits such as child benefit and one parent family benefit, the rate of children at risk of poverty would be 10% higher.
And in the absence of in-kind benefits, such as free preschool and school meals, the at risk of poverty rate for children would be 1.5% higher.
Increasing child benefits further would decrease child poverty, the ESRI report found.
Welfare reforms that could decrease child poverty include increases to the working families payment, to child support payments, and to child benefit, as well as the introduction of a means-tested second tier of child benefit.
"A proposed second tier of means-tested child benefit emerges as the most cost-effective option, reducing the child at risk of poverty rate by 4.6% (lifting 55,000 children out of income poverty) and consistent poverty by 2.1% (lifting 25,000 children out of consistent poverty) — at an annual cost of approximately €772m," the report said. Report author and ESRI senior research officer Bertrand Maitre said:
The importance of tackling child poverty is becoming increasingly clear through research that shows the detrimental immediate and long-term effects of suffering childhood disadvantage.
Report author and ESRI associate research professor Karina Doorley said: 'Our findings show that child-related benefits are a powerful tool in reducing poverty. Well-targeted reforms to the system of child-related benefits could further improve outcomes for children and families currently experiencing poverty. A second tier of Child Benefit could be a key part of that solution.'
Published as part of the ESRI's Budget Perspectives 2026 series, the report evaluates the impact of existing benefits like Child Benefit, Working Families Payment, the National Childcare Scheme (NCS) subsidies and free schoolbooks and meals on child poverty.
The ESRI report comes one day after the child poverty monitor found that the number of children in consistent poverty rose by 45,000 to almost 103,000 last year — a 78% increase.
The child poverty monitor is published by the Children's Rights Alliance, which said the increase in child poverty levels was 'staggering' at a time of significant economic growth in 2024.
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The Irish Sun
a day ago
- The Irish Sun
New €285 Child Benefit cash in €145 boost for 55k Irish families amid tier rule change call after ‘targeted' plan latest
A SECOND-TIER of Child Benefit worth an average of €285 per month has been identified as a "key solution" to lifting thousands out of poverty. It comes after the Department of Social Protection told us that Government is exploring a The And a "second-tier" allowance would allow lower-income families to top up the existing €140-a-month benefit. The call comes after a report from the Economic and Social Research Institute confirmed that child-related benefits have lifted over 150,000 children out of poverty so far. The study, published as part of the ESRI's Budget Perspectives 2026 series, evaluated the impact of existing benefits on child poverty. READ MORE IN MONEY It found Ireland's system of The report considered in-cash benefits such as It also considered in-kind child-contingent benefits such as Accounting for both in-cash and in-kind child benefits, the simulated child At Risk of Poverty rate for 2025 is 13.9 per cent, or 165,000 kids. Most read in Money The ESRI said the AROP rate would be 10 per cent higher in the absence of in-cash benefits and 1.5 per cent higher without in-kind benefits. Little known social welfare benefits thousands are entitled to And considering further ways to reduce child poverty, the researchers called for a second tier of means-tested Child Benefit, claiming it would be the "most cost-effective option". Child Benefit is a A second tier of the The new payment shake-up would cost the government approximately €772 million each year, according to the ESRI. 'KEY PART OF SOLUTION' Karina Doorley, Associate Research Professor at the ESRI, said child-related benefits are a "powerful tool" in reducing poverty. She added: "Well-targeted reforms to the system of child-related benefits could further improve outcomes for children and families currently experiencing poverty. "A second tier of Child Benefit could be a key part of that solution." Speaking on , Dr Doorley explained what impact spending €772 million on a second tier of child benefit would have. She said: "Really, to take a lot of children out of poverty, you need to give low income households a lot of money. 'So, that would amount to about an extra €150 million on average for low income households. But it would vary depending on whether they were on the lower end of the spectrum or the higher end. ELIGIBLE FAMILIES 'So, that would amount to a payment, on average, of about €285 per child when you account for the universal child benefit - as well as the means tested payment." And the Associate Research Professor said there are a number of ways to calculate which families are eligible for the payments. She explained: "At the moment, there are 15 per cent of children living below the poverty line in Ireland. 'Another way that we measure poverty is using the material deprivation rate; so this reports on the proportion of families who can't afford essential items - so, two or more from a list of essential items. 'The proportion of children living in households that can't afford these essential goods is also very high at 21 per cent - compared to the total population rate of 16 per cent." 'TARGETED' SUPPORT PLAN The Programme for Government states that it is "committed" to with the while also providing "targeted supports" to those most in need. And last month, the Department of Social Protection told The Irish Sun that the Government is exploring a new "targeted" Child Benefit payment. The Programme for Government vows to introduce Pay Related Parents Benefit, explore the extension of Parents Leave, continue to "support families with cost of raising their family through the Child Benefit payment" and increase core welfare payments. 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Meanwhile, the 2025 Child Poverty Monitor from the Children's Rights Alliance yesterday told how the number of children living in consistent poverty is "deeply concerning". The figure rose by a staggering 54,107 in 2024 to 102,977 this year. Tanya Ward, Chief Executive of the Children's Rights Alliance said: "These are children for whom a decent standard of living and aspirations of a better future diminish day by day. "This poverty is not inevitable. Policy decisions and budget investments determine the fate of these children and young people." Ward noted that there is "plenty of progress" to report in 2025. NO SUMMER DOUBLE CHILD BENEFIT BOOST A DOUBLE €280 August Child Benefit promised by Fine Gael leader Simon Harris last year is unlikely to hit the accounts of the over 650,000 Irish families who benefit from the boost. In November 2024, then Taoiseach In a post on Instagram, he said: "A double child benefit payment every August to help parents with costs, particularly around the costs of schools and the additional costs parents often face over the summer. "Please share to spread the word. I need your support for Fine Gael so I can get on with delivering on this agenda." However, his proposed August double payment is unlikely to happen . When asked if the double August Child Benefit is being considered, the Department of Social Protection confirmed that the boost is not outlined in the Programme for Government. Free school books, Universal measures have advanced rapidly since She added: "Budget 2026 has to focus on breaking the cycle." The Children's Rights Alliance said the 'LANDSLIDE EFFECT' But Ward added: "The incremental increases of a few euro are barely enough to buy the bottle of milk and shampoo that week. "This targeted income support is designed to help children in families already relying on social welfare to level the playing field. "The cumulative impact of continued rising costs has created a landslide effect for low-income families, meaning ensuring the very basic necessities such as nutritious food or keeping your home warm become increasingly difficult. "It is critical that these supports are increased adequately in Budget 2026, and that investment is sustained across subsequent budgets under this Programme for Government." And Tanya said the multi-faced nature of child poverty will take "sustained investment" across multiple departments and budgets to break the cycle. She added: "The commitment and continued investment in universal measures is positive but not every child can enjoy the benefits of these without targeted supports to do so. "We now need to see this Government go even further than before, and take a determined, ambitious approach to making Ireland the country to break the cycle of poverty in one generation." 1 Experts have called for the introduction of a second-tier Child Benefit in Budget 2026 Credit: Getty Images
Irish Independent
a day ago
- Irish Independent
Extra Child Benefit payment would lift 55,000 children out of poverty, says ESRI
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Irish Examiner
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