Budget 2026: Second targeted child benefit payment 'not off the table'

Irish Examiner

16-06-2025

The introduction of a second, targeted child benefit payment is 'not off the table' for Budget 2026, the Taoiseach has said.
Micheál Martin said consideration was being given towards the introduction of a second-tier of child benefit.
'Nothing's off the table, we're examining all options in respect of this. We have to do something targeted and something that will have a meaningful impact on child poverty.'
The Taoiseach said there would be a 'very significant expenditure' required for such a proposal, with the Government due to look at other options to tackle child poverty.
'There's a wide menu there that we can choose from to target resources to meaningfully impact on the child poverty situation,' Mr Martin said.
'That's not just in terms of income supports, but also in terms of other initiatives in education. For example, the Deis+, which would target more children in particular with severe disadvantage.'
Within the 2025 programme for government, there are commitments to 'explore a targeted child benefit payment'.
At present, child benefit is paid out to families at a value of €140 per month per child. It is paid to children until they reach 16.
However, 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.
On disabilities, Mr Martin said the Government would give consideration to beginning the process of ending the means test for the carers' allowance. He added there was a 'commitment' to end the means test within the programme for government.
Housing
However, the Taoiseach declined to speculate on possible tax breaks for developers featuring as part of the budget.
Mr Martin highlighted the market sensitivities, but added there would be further initiatives on housing unveiled in the weeks ahead.
He said the Government's agenda was to create 'certainty' to bring in more private finance into the housing market.
It comes as finance minister Paschal Donohoe did not rule out the possibility of tax breaks for developers, saying how the Government supports the building of homes and infrastructure would be a 'key feature of the budget'.
'What I just want to ensure is that any decisions that we do make are ones that are affordable, well designed and myself, [public expenditure] Minister [Jack] Chambers and the party leaders, will be able to listen to all of these views and work out what I believe will be a safe, sensible budget for next year.'
Pressed on this and how he previously came out against such tax reliefs, Mr Donohoe said: 'We're at a position now where we will be intensifying the work in relation to the budget.
'I've outlined my views in the past, I'm clear, but what I'm focused on doing now is working with Minister Chambers to deliver the budget and making sure that all we do in the budget is safe.'
Meanwhile, Mr Harris said the Government's pledge to cut the Vat rate to 9% for hospitality was a 'solemn commitment' and it was not just a tax cut for businesses.
'It's about recognising that in every town and every village, there are small businesses that are creating employment that want to be able to keep going and need to be supported,' Mr Harris said.
Mr Donohoe added that the Government was committed to delivering on Vat in the budget.
However, he warned there may not be income tax cuts in the upcoming budget, with the finance minister saying 'decisions have to be made'.
'If we decide that we are going to make a particular set of decisions and investments in tax, then that means there are other things that we will not do,' Mr Donohoe said.