Cork TD calls for two-tier child benefit scheme to lift children out of poverty

An ESRI report has revealed that one in five children live in families below the poverty line when housing costs are accounted for, as a Cork TD has called for a two-tier child benefit to be introduced in Budget 2026.

The figure from the ERSI research, published in partnership with Community Foundation Ireland, using the latest data from the CSO’s survey on income and living conditions, amounts to more than 225,000 children.

Ireland is ranked 16 out of 27 countries in the EU in terms of its after-housing-cost poverty rate for children.

This rate is largely unchanged in recent years, and differs little from that seen from 2007 to 2009, when the financial crisis was unfolding.

Other key findings include that after adjusting for household size and inflation, average incomes fell by 0.6% in the year to 2023, 3.3% below their 2021 level.

Inflation has been approximately 7% higher than the headline rate for lowest-income households — a result of light, heat, and groceries making up a larger share of total expenditure, and 5% lower than the headline rate for the highest-income fifth of households.

Damning indictment

Social Democrats TD and party spokesperson on social protection, Liam Quaide, has described the findings as “a damning indictment of the Government’s repeated failure to meet the basic needs of children, despite unprecedented budget surpluses”.

“The scale of deprivation revealed in this report should shame a Government that claims to be committed to making Ireland the best place in Europe to be a child,” he said.

“At a time when the State has been recording budget surpluses, the failure to make even modest progress on this crisis is indefensible.”

The report identifies the introduction of a second, means-tested, tier of child benefit as the single most effective intervention available to Government. Such a payment would lift 55,000 children out of income poverty and 25,000 out of consistent poverty, at an annual cost of €772m.

No excuse

Mr Quaide said his party has long advocated for a two-tier child benefit system, where universal payments are maintained but those most in need receive targeted, additional support.

He said: “The ESRI has now confirmed that this is the most effective and cost-efficient way of addressing child poverty. There is no excuse for the Government not to adopt this measure in Budget 2026.

“The ESRI’s analysis is not just another report to sit on a shelf. It is a stark wake-up call. The evidence is clear, the solutions are known, and the resources are available. What is missing is the political will from Government.