Ireland Plans Major Reform of Jobseeker’s Allowance and Child Benefit System

Dublin: Ireland is preparing a major overhaul of its social welfare system, including significant reforms to Jobseeker’s Allowance aimed at preventing people from suddenly losing benefits when their income increases.

Ahead of the proposed changes, the Department of Social Protection has launched a public consultation process. The reforms are expected to introduce a more flexible support system for unemployed and low-income workers.

Currently, Jobseeker’s Allowance acts as a key financial support for unemployed people and part-time workers. However, under the existing system, earning above certain limits can result in payments being stopped abruptly. The government now plans to replace this approach with a new “Working Age Payment” model.

Under the proposed system, payments would gradually reduce as a person’s income rises, instead of ending suddenly. Officials believe this would eliminate the so-called “cliff-edge” effect, where individuals lose all support once they cross an income threshold.

The proposed payment system is expected to apply to people aged between 18 and 66, regardless of the number of days or hours worked. It would cover single people, couples, and families with children. The government says the goal is to create a more flexible welfare structure that encourages people to increase working hours without fear of immediately losing financial support.

Plans for Second-Tier Child Benefit

The government is also considering introducing a new targeted payment for low-income families as part of broader anti-poverty measures.

The proposal includes the creation of a standalone “second-tier child benefit” payment designed specifically to support families with children on lower incomes. The scheme could replace existing supports such as the Child Support Payment and Working Family Payment.

Officials say the objective is to provide a dedicated weekly payment to reduce child poverty and improve financial stability for vulnerable households.

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