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Irish Independent
3 days ago
- Business
- Irish Independent
Extra Child Benefit payment would lift 55,000 children out of poverty, says ESRI
The Economic and Social Research Institute (ESRI) report to be published today recommends a 'second-tier' allowance for lower-income families to top up the existing €140-a-month benefit. It estimates that spending just under €800m a year on the scheme could halve the number of children experiencing consistent poverty. Families eligible for the scheme would get an extra means-tested payment worth an average €145 per month. The amount paid would vary depending on the household income and number of children in the family. All parents would continue to receive the universal €140 Child Benefit payment for each child, which is paid from birth until the 16th birthday. Child Benefit is paid for children up to the age of 18 if they have a disability or are in full-time education or training. Other reforms included increases to the Working Families Payment, child support payments and Child Benefit Karina Doorley, an author of the report and associate research professor at the ESRI, said introducing second-tier Child Benefit would award €145 on average per month per child to eligible households. She said the amount paid would be higher for lower-income households and lower for higher-income households. It would cost €772m a year. Ms Doorley said the new payment would be separate from the universal payment of €140 a month, which would stay in place. 'All children would be entitled to the existing €140 per month Child Benefit payment,' she said. 'Some low-income children would be entitled to a second payment, averaging €145 per month, but higher or lower depending on their income level.' The report said a 'proposed second tier of means-tested Child Benefit emerges as the most cost-effective option' after examining a range of tax and benefit system reforms to reduce child poverty. Other reforms included increases to the Working Families Payment, child support payments and Child Benefit. 'We find that the introduction of a second tier of Child Benefit would be the most cost-effective way to reduce child AROP (at risk of poverty) rates,' the report said. 'It is also an effective way to reduce child deprivation and consistent poverty. We estimate that spending just under €800m annually on such a scheme could halve the number of children experiencing consistent poverty.' There should be a serious look at a targeted Child Benefit payment. It's the only way to make a real dent in child poverty rates The research said a second tier of means-tested Child Benefit would reduce the child 'at-risk-of-poverty' rate by 4.6 percentage points (lifting 55,000 children out of income poverty) and consistent poverty by 2.1 percentage points (lifting 25,000 children out of consistent poverty). Ms Doorley said a second-tier Child Benefit system has been suggested before, but this analysis examines its impact on deprivation and consistent poverty. 'What we're suggesting is there should be a serious look at a targeted Child Benefit payment,' she said. 'It's the only way to make a real dent in child poverty rates.' However, she said the scheme is not without problems and the incentive to work while receiving it would have to be examined. The report noted that the Programme for Government commits to exploring the introduction of a second-tier Child Benefit.
RTÉ News
3 days ago
- General
- RTÉ News
Child-related benefits lift 15,000 children out of poverty
Child-related benefits have lifted over 150,000 children out of poverty according to the Economic and Social Research Institute. The study, published as part of the ESRI's Budget Perspectives 2026 series, evaluated the impact of existing benefits on child poverty. It found that Ireland's system of child-related cash and in-kind benefits has significantly reduced child income poverty and deprivation. In-cash benefits such as Child Benefit and Working Families Payment are considered in addition to in-kind child-contingent benefits such as National Childcare Scheme subsidies and free school books and meals. These benefits according to the ESRI are lifting an estimated 157,000 children out of income poverty and 94,000 out of consistent poverty. Yesterday, the Children's Rights Alliance published its latest Child Poverty Monitor which showed that there were almost 103,000 children in households in consistent poverty last year. Consistent poverty describes an income below the relative or at risk of poverty threshold and a person who cannot afford at least two of 11 deprivation indicators. Those indicators include having two pairs of strong shoes, a warm waterproof overcoat and eating meat, chicken, fish or a vegetarian equivalent every second day. The ESRI found that when it accounted for both in-cash and in-kind child benefits, the simulated child At Risk of Poverty (AROP) rate for 2025 was 13.9% (165,000 children). It concluded that in the absence of in-cash benefits, the AROP rate would be 10 percentage points higher. When it examined in-kind benefits, such as free preschool and school meals, the AROP rate would be 1.5 percentage points higher in their absence. Accounting for both in-cash and in-kind child benefits, researchers found a simulated child consistent poverty rate of 5.6%. In the absence of these supports the child consistent poverty rate would be 13.6%. The research explored ways to further reduce child poverty. A proposed second tier of means-tested Child Benefit "emerges as the most cost-effective option" according to the report. It would reduce the child AROP rate by 4.6 percentage points (lifting 55,000 children out of income poverty) and consistent poverty by 2.1 percentage points (lifting 25,000 children out of consistent poverty) - at an annual cost of approximately €772 million.
Irish Examiner
3 days ago
- Business
- Irish Examiner
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.
Irish Times
3 days ago
- Business
- Irish Times
Child-related benefits lift 150,000 children out of poverty, ESRI finds
Child-related social benefits have lifted more than 150,000 children out of poverty in Ireland , according to the Economic and Social Research Institute (ESRI) . It found Ireland's current system of offering child-related cash and in-kind benefits had reduced child poverty and deprivation, bringing an estimated 157,000 children out of income poverty and 94,000 out of consistent poverty. The study, published on Wednesday, is part of the ESRI's Budget Perspectives 2026 series. According to the Central Statistics Office (CSO), consistent poverty is defined as that applying to individuals who are at risk of poverty – meaning they have a low household income – and experience enforced deprivation. READ MORE The figures come shortly after the Children's Rights Alliance revealed the number of children in consistent poverty rose by 45,000 to more than 103,000 in 2024. Last week, a separate longitudinal survey of children in Ireland aged between 10 and 17 found 18.3 per cent were going to school or bed hungry because there was not enough food at home. Cash benefits such as Child Benefit and Working Families Payment are considered by the study, as well as in-kind benefits such as National Childcare Scheme subsidies and free schoolbooks and meals. Taking all of these into account, the simulated child consistent poverty rate was found to be 5.6 per cent. In the absence of such supports, however, the child consistent poverty rate would be 8 per cent higher, at 13.6 per cent. The predicted child At Risk of Poverty (AROP) rate for 2025 is 13.9 per cent, or about 165,000 children. In the absence of cash benefits, that would be 10 per cent higher, while an absence of in-kind benefits – such as free preschool and school meals – would increase the AROP rate by 1.5 per cent. ESRI associate research professor Karina Doorley, one of the report's authors, said child-related benefits were '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,' she said. The ESRI's proposed second tier of means-tested child benefit would reduce the child AROP rate by 4.6 percentage points (lifting 55,000 children out of income poverty) and consistent poverty by 2.1 percentage points (lifting 25,000 children out of consistent poverty), it said. It suggested this as the 'most cost-effective option' for targeting child poverty rates, at an annual cost of approximately €772 million.
