Child-related benefits keep over 150,000 children out of poverty, ESRI report finds
But 165,000 children (13.9%) are at risk of poverty in 2025, a new report from the Economic and Social Research Institute (ESRI) also found.
Without in-cash benefits such as child benefit and one parent family benefit, the rate of children at risk of poverty would be 10% higher.
And in the absence of in-kind benefits, such as free preschool and school meals, the at risk of poverty rate for children would be 1.5% higher.
Increasing child benefits further would decrease child poverty, the ESRI report found.
Welfare reforms that could decrease child poverty include increases to the working families payment, to child support payments, and to child benefit, as well as the introduction of a means-tested second tier of child benefit.
"A proposed second tier of means-tested child benefit emerges as the most cost-effective option, reducing the child at risk of poverty rate by 4.6% (lifting 55,000 children out of income poverty) and consistent poverty by 2.1% (lifting 25,000 children out of consistent poverty) — at an annual cost of approximately €772m," the report said. Report author and ESRI senior research officer Bertrand Maitre said:
The importance of tackling child poverty is becoming increasingly clear through research that shows the detrimental immediate and long-term effects of suffering childhood disadvantage.
Report author and ESRI associate research professor Karina Doorley said: 'Our findings show that child-related benefits are a powerful tool in reducing poverty. Well-targeted reforms to the system of child-related benefits could further improve outcomes for children and families currently experiencing poverty. A second tier of Child Benefit could be a key part of that solution.'
Published as part of the ESRI's Budget Perspectives 2026 series, the report evaluates the impact of existing benefits like Child Benefit, Working Families Payment, the National Childcare Scheme (NCS) subsidies and free schoolbooks and meals on child poverty.
The ESRI report comes one day after the child poverty monitor found that the number of children in consistent poverty rose by 45,000 to almost 103,000 last year — a 78% increase.
The child poverty monitor is published by the Children's Rights Alliance, which said the increase in child poverty levels was 'staggering' at a time of significant economic growth in 2024.
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