Major new social welfare shake-up could see Carlow families earn hundreds more annually
Proposals for a new "second-tier" child payment could replace existing supports for low-income families
A major overhaul of Ireland's social welfare system is under consideration, with proposals for a new "second-tier" child payment that could replace existing supports for low-income families across Carlow and Ireland.
The plans, published by the Department of Social Protection, form part of a public consultation launched by Minister Dara Calleary aimed at tackling child poverty and simplifying the current welfare system.
At the centre of the proposal is a new targeted child payment or a "second-tier Child Benefit". Unlike standard Child Benefit, which is paid universally, this new payment would be means-tested and aimed specifically at lower-income households.
The new payment could replace a number of already existing supports, including payments like the Working Family Payment and Child Support Payment, with a single, streamlined weekly payment per child.
Under the proposals, families on the lowest incomes would receive the highest payments, with support tapering off gradually as income rises, a model designed to avoid so-called "welfare cliffs" where people lose benefits suddenly when they start earning more.
While no final rates of payments have been confirmed, early analysis suggests a targeted payment could be worth hundreds of euro per child annually, with higher rates for older children due to increased costs.
Payments would also likely vary depending on household income and the number of children, with thresholds adjusted accordingly.
The move is part of a wider effort to reduce child poverty and modernise Ireland's welfare system. Officials say the current mix of supports can be complex and may exclude some families in need, while also discouraging people from taking on extra work due to income limits and eligibility rules.
By introducing a single targeted payment, the Government hopes to ensure more consistent support while making the system easier to navigate.
The proposals are part of a discussion document, with the Government now seeking feedback from the public and stakeholders before deciding whether to proceed, tweak the current system, or abandon the idea altogether.
Submissions are expected over the coming weeks, with any potential changes likely to be considered as part of future budgets.