Micheál Martin gives update on increasing child benefit in Budget 2026

This follows the recent report proposing a two-tier child benefit system

He spoke about the child poverty rate in Ireland at the National Economic Dialogue on June 16th:

"In the Programme for Government, we said that child poverty is not inevitable, and I am determined to turn that commitment into actions that will transform lives."

"Unfortunately, after years of progress, the most recent figures show an unwelcome increase in persistent child poverty.

"We need to make sure that this increase turns out to be a temporary spike, out of line with the overall trend.

"Therefore, for Budget 2026, I have asked my ministerial colleagues to plan and come forward with measures that will really make the difference to the most vulnerable families and children.

"If we are successful, we will grow societal and economic resilience and support social cohesion, and create the context for thriving and vibrant communities."

Martin's speech follows the recent ERSI proposal to make a two-tier child benefit system

This report aims to increase payments by an average of €285 a month, which would help tackle child poverty.

The team at the ESRI suggested increasing the current €140 payment to €285 for lower-income families.

They believe this could help tackle the child poverty crisis in Ireland.

Speaking about the impact this change could have on families, Dr Karina Doorley told Newstalk:

“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.

“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.”

A second-tier child benefit payment could help so many families living below the poverty line.

“It would reduce the number of children living in income poverty by 4.6% – so, that would lift 55,000 children out of income poverty.”

All parents currently receive a monthly payment of €140.