Budget 2027 and Child Poverty

A Budget that is serious about addressing child and family poverty, and supporting the most vulnerable households in a cost of living crisis must prioritise benchmarking social welfare rates to average earnings and increasing child payments in Budget 2027.   Comments by An Taoiseach and the Minister for Social Protection on the need to prioritise families and children in Budget 2027 are welcome – they must be followed through with specific interventions in October’s Budget.  Priority measures include a commitment to benchmarking social welfare rates to average earnings over two budgets; a €15 weekly increase in core social welfare rates; and increases in Child Benefit and Child Support Payments. 

Priority measures  for Budget 2027:

• a commitment to benchmarking social welfare rates to average earnings over two budgets;
• a €15 weekly increase in core social welfare rates;
• a €20 increase in Child Benefit;
• an increase in Child Support Payments - €10 for children under 12 and €18 for children over 12;
• extend Housing First to families who are homeless

Budget interventions to address child and family poverty

There are specific measures which, if included in Budget 2027, would have a positive impact on child and family poverty.  Child poverty does not exist in a vacuum. More than 200,000 children live in poverty in Ireland.  They live in families, and these families need support in the forthcoming Budget.  The best means to address child poverty, and to support vulnerable households is to prioritise low-income welfare dependent families in Budgetary policy.  Prioritising these families works and leads to reductions in poverty.

Budget 2027 must build on the incremental measures introduced last year. Government must continue to increase the Child Support Payments, but if we are really to begin to address child and family poverty, household income must be a key focus.  Social Justice Ireland is calling on the Minister for Social Protection to commit to benchmarking social welfare rates to 27.5 per cent of average weekly earnings in Budget 2027.  

This can be done over two budget cycles and requires a €15 increase in core social welfare rates in Budget 2027 and a further €10 increase in Budget 2028.  Real progress on child and family poverty requires progress on household income.  And for the most vulnerable children and their families this means increases in weekly social welfare payments. 

A Budget for Children and Families

Government’s intention to ensure that there are targeted measures in place to support vulnerable households with the impact of ongoing price increases, particularly in essentials such as food, housing and energy, is welcome.  Once off measures, while providing temporary support, don’t work and simply widen income divides in the long term.  Benchmarking social welfare rates to average earnings and indexing them against earnings going forward would help to mitigate the impact of rising costs, give long-term certainty to households on fixed incomes, and prevent widening income inequality.

Social Justice Ireland’s Budget proposals for children and families are designed to have maximum impact on poverty and improve the social infrastructure that families need to thrive. 

Budget Choices 2027 is available to download here.