Taoiseach publishes report on addressing child poverty in Budget 2026: supporting children and families that need it the most

Taoiseach Micheál Martin has today published a report that analyses new spending in Budget 2026 to address child poverty. Prepared by the Child Poverty and Well-being Programme Office in the Department of the Taoiseach, Breaking the Cycle: New Measures in Budget 2026 to Address Child Poverty and Promote Well-being is the third cross-government report on child poverty spending in the annual Budget – and the first Budget of the Government’s term.

This report looks at how the Budget contributes to realising the recently published child poverty target. This target aims to have 3% or less of children in consistent poverty by the end of 2030.

Budget 2026 aims to move away from cost-of-living payments towards permanent targeted payments to support those most vulnerable. A €320 million social welfare package for children includes the largest increase ever in the Child Support Payment, increased income thresholds for the Working Family Payment, and the extension of Fuel Allowance to those on the Working Family Payment.

Increases in prices and wages have widened the gap between people reliant on social welfare and the average income in society. So, in recent years, the Government has invested to protect low-income families with children; since 2020, the weekly Child Support Payment has increased by 95% for children aged 12 and over, and by 61% for children under 12. This exceeds the growth in average wages (28%) and exceeds the rate of increase of many other permanent social welfare payments.

Other new or enhanced allocations in Budget 2026 to address child poverty include:

• An additional €5.14 million for Equal Start - a 30% increase from the 2025 allocation
• An additional €16.5m (€48 million full year cost) to the Department of Education and Youth to implement a new DEIS Strategy and the new DEIS Plus scheme
• A 22% increase of €7.3m for Youth Justice supports
• €3.2m of additional funding to expand and strengthen the national network of Family Resource Centres, with the addition of ten new centres, bringing the national total to 136, and
• Expansion of the income thresholds for the National Childcare Scheme, which will reduce the costs of childcare for lower-income families.

Given the growing demand for many children’s services, and challenges with training, recruitment and retention, this year the report highlights new and additional spending on the children’s services workforce.

Publishing the report, the Taoiseach said:

“In Budget 2026, the Government prioritised children and families who need our support the most. Across all relevant government departments, in education, early learning and care, health and housing, we targeted spending so that every child can have a great start in life.

“This targeted approach is a strategic decision by Government to close the gap for children and families most at risk in our society. This Budget is the first important step in a multi-year programme to significantly reduce child poverty.

“Funds allocated in Budget 2026 aim to improve not only equity of access to services and supports, but to provide the foundation for all children to thrive. Focusing our efforts on these children and their families will bring Ireland lasting benefits for decades to come.”

Minister for Social Protection, Dara Calleary said:

“Budget 2026 reflects the Government’s determination to reduce child poverty. The social welfare package contained in the Budget will invests €320 million to tackle child poverty through targeted supports. This includes the largest ever increases in the Child Support Payment and increases in Working Family Payment thresholds, both of which are targeted supports that are effective at tackling poverty levels. It also includes the extension of the Back-to-School Clothing and Footwear Allowance to children aged 2 and 3, the extension of Fuel Allowance to recipients of the Working Family Payment, as well as the continued rollout of the hot school meals programme. These supports will make a real difference to children and families across Ireland.”

Minister Foley said:

“I welcome the cross-government approach to tackling child poverty in Budget 2026. A key focus for me in the Budget was expanding programmes which have a proven track record in improving the life prospects for children. That is why we are expanding the Equal Start programme in early years education for children at risk of disadvantage, adding ten new Family Resource Centres and expanding the income thresholds to increase the income subsidies for 47,000 children in low-income families.”

Minister for Education Hildegarde Naughton said:

“It is a core priority of mine to ensure we do all we can to tackle educational disadvantage and support students to reach their full potential. The additional €16.5 million (€48 million full-year cost) secured in Budget 2026 for the implementation of a new DEIS Strategy and DEIS Plus scheme will make a significant difference for many children and young people across Ireland.

“The new DEIS Strategy and DEIS Plus Scheme focuses on improving opportunities and achievement levels for children at risk of educational disadvantage and developing more innovative approaches to tackling educational disadvantage. The plan, which I will launch early in the new year, will provide for a more flexible system ensuring that schools will receive the right support at the right time."

The report is available on the Child Poverty and Well-being Programme Office website: www.gov.ie/childpoverty

Notes to Editors

In Spring 2023, the Taoiseach established the Child Poverty and Well-being Programme Office in the Department of the Taoiseach. On 1 August, the Programme Office published its initial work programme for the next two and a half years, From Poverty to Potential: A Programme Plan for Child Poverty and Well-being 2023-2025.

The initial Programme focuses on six areas that will have the greatest impact on the lives of children who experience poverty. These six areas are:

1) Income supports and joblessness

2) Early learning and childcare

3) Reducing the cost of education

4) Family homelessness

5) Consolidating and integrating family and parental support, health and well-being

6) Enhancing participation in culture, arts and sport for children and young people affected by poverty

The role of the Child Poverty and Well-being Programme Office is to drive implementation of a broad range of commitments that will impact these six areas. The Office also undertakes a small number of strategic initiatives aimed at enhancing the efficiency and efficacy of cross-government responses to child poverty. This includes supporting a specific focus on child poverty at Budget time. This builds on international practice, which has shown that a focus on child poverty in the Budget can have a significant impact on delivery and innovation.

Following Budget 2024 and Budget 2025, the Programme Office published similar reports analysing how these Budgets addressed child poverty and well-being. Both are also available on the Programme Office website.

The Government’s target to reduce consistent child poverty to 3% or less by the end of 2030 was published on 10 September 2025. Consistent poverty occurs where a person has a low income (below 60% of the median) and also experiences enforced deprivation, meaning they are unable to afford at least two basic necessities such as heating, new clothes, or nutritious meals. This indicates a persistent inability to meet essential needs.

The development of the report benefited from the participation of children and young people. A Youth Advisory Group, established by the Department of Children, Disability and Equality and the Department of the Taoiseach, made budgetary recommendations to the Taoiseach, senior Ministers and government officials. The report includes information on this process and also a child-friendly summary.