Second benefit tier could lift 40,000 children out of poverty - ESRI

James Cox

A new second tier of child benefit could lift 40,000 children in Ireland out of poverty, according to a new report.

The Economic and Social Research Institute (ESRI) has carried out an analysis of increases to the payment, and found a second tier of eligibility would help more children.

It found a second rate of the payment would help more than 100,000 households, and cost €700 million a year.

The report's lead author, Dr Barra Roantree, said a second rate of child benefit would make sure the country's poorest children are protected.

"This government, and also different parties in opposition, have really stressed a political priority for them is reducing child poverty.

"What we're trying to show is here is a way you can go about doing it, and go about doing it in a way that doesn't miss certain groups of children."

Dr Roantree added: "They've said it's their ambition to actually eliminate child poverty, that was what the Taoiseach said earlier this year when he launched a new unit in his department.

"What we've said is this kind of model is how you could do it. The structure of the current system as we have it, means that you have to do it via child benefit and that's very expensive as you're giving it to all kids... whereas if you do it this way it can be targeted to those kids who are below the poverty line."