Child benefit in Ireland: a 2026 guide to rates, uses and budget changes

Child benefit is a monthly universal payment administered by the Department of Social Protection to support parents with child-rearing costs.

• Standard monthly rate: €140 per child (unchanged in Budget 2027).

• Multiple birth rates: Twins qualify for 1.5 times the standard rate (€210/month per child). Triplets and quadruplets receive double the standard rate (€280/month per child).

• New baby grant: First-time claims for newborns include a one-off €280 double-payment grant alongside the first monthly payment.

Payment schedule: Funds are paid on the first Tuesday of each month into your nominated bank account.

No, child benefit is a universal, tax-free payment. It is not considered taxable income, and it is not means-tested, so you will receive it regardless of your income, employment status, or the amount you have in savings.

For families planning their long-term savings, it is helpful to note that the core child benefit rate has been very stable in recent years. In fact, the €140.00 rate has remained unchanged for a decade, following a series of adjustments during previous economic cycles.

While the core universal child benefit rate has remained flat, the government did announce significant increases to targeted support in the latest budget. Specifically, the weekly Child Support Payment (formerly known as the qualified child increase) was raised from January 2026 to provide extra financial support for families receiving qualifying social welfare payments. Payments increased by €8 per week for children under 12, bringing the rate from €50 to €58. For children aged 12 and over, the payment saw a larger increase of €16 per week, rising from €62 to €78. This targeted approach aims to help with the rising cost of living for those who need it most, without altering the universal monthly payment.

While the core universal Child Benefit rate remains fixed at €140 per month, the government's Budget 2027 announcement included significant updates to targeted family supports and tax thresholds. Effective January 2027, the weekly Child Support Payment increases by €6 to €64 per week for children under 12, and to €84 per week for children aged 12 and over. Statutory leave benefits, including Maternity, Paternity, Parent’s, and Adoptive Benefit, rise to €309 per week. Working Family Payment (WFP) income thresholds increase by €30 per week across all family sizes, and the Single Person Child Carer Credit (SPCCC) cut-off rises to €50,500. Looking ahead to September 2027, the National Childcare Scheme (NCS) universal subsidy increases to €2.50 per hour, alongside a full-time childcare fee cap of €550 per month.

Many parents are keen to find ways to make their child benefit go further. Rather than absorbing the funds into daily household expenses, a growing number of families use their child benefit to start investing for the future.

Over an 18-year horizon, saving €140 on a monthly benefit could add up to more than €30,000. This is a substantial lump sum that can be put to good use in future, with many parents setting it aside for further education to help their child graduate debt-free. 

Treating child benefit as an investment opportunity could help combat the effects of inflation, as well as potentially growing your funds further by compounding interest, or benefitting from stock market growth over time. Many parents choose to invest via diversified portfolios or exchange-traded funds (ETFs) in the hope of benefitting from long-term stock market growth.

Remember that investment values can fall as well as rise, and your capital is at risk. You may get back less than you put in.

Finding the best way to invest your child benefit is dependent on personal circumstances, goals and risk tolerance. No single approach will work for every family. 

Some parents prefer the stability of fixed savings, while others accept market risk in exchange for potential long-term growth. Here are some common options you might consider:

• Ireland State Savings: Products like Childcare Plus allow you to automatically save your monthly child benefit for a fixed return. These are backed by the Irish State, though the returns may be lower than stock market investments.

• Savings accounts and fixed-term deposits: You can build your child's fund in a traditional savings account. Platforms like Raisin give you access to competitive interest rates from banks across Europe. Keep in mind that any interest you earn may be subject to Deposit Interest Retention Tax (DIRT).

• Investment funds and ETFs: If you have a longer timeframe, you might consider investing the funds in the stock market. This can be done in your own name or via a bare trust. While this offers the potential for higher returns, your capital is at risk and you may get back less than you put in.

You can set up a legal structure to hold assets specifically for your child, known as a bare trust. 

You also have the option of opening an investment account in your own name to save for your child’s future, or contributing to a children’s savings account.

A bare trust holds assets legally on behalf of a minor until they turn 18. When combined with Revenue’s Small Gift Exemption, it allows parents to build wealth without future tax penalties:

• Dual parent exemption: Each parent can gift up to €3,000 annually per child (€6,000 combined per year per child) into a bare trust without triggering Capital Acquisitions Tax (CAT) or consuming the child's €400,000 lifetime Group A parent-to-child exemption.

• Investment tax realities: Assets inside the trust are taxed based on asset type: cash interest incurs 33% DIRT, direct shares incur 33% CGT (with a €1,270 annual allowance), and UCITS ETFs incur 38% Exit Tax with mandatory 8-year Deemed Disposal filings.

The age 18 control rule: Bare trust arrangements are legally irrevocable. At age 18, the child assumes full control of all assets, regardless of parental intent or educational status.

If you register the birth of your first baby in Ireland within three months, the Department of Social Protection automatically sends you a partly completed CB1 form. This letter will include instructions on how to claim online via MyWelfare.ie using a verified MyGovID. You will be asked for details including your address, bank details and residency status. If you don’t have a verified MyGovID account, set this up first.

If your child was born outside of Ireland, or you missed the three-month registration window, you must fill out a physical CB1 form. You will need a Personal Public Service (PPS) Number for both you and your child to complete the application.

You should apply for the benefit within 12 months of your child's birth or within 12 months of your family moving to live in Ireland.

Child Benefit automatically continues until a child's 16th birthday. Payments extend up to their 19th birthday if the child remains in full-time education, approved training, or has a qualifying disability.

To continue receiving payments after age 16, parents must submit Form CB2 to the Department of Social Protection certifying full-time educational or training enrollment.

If you decide to save or invest your child benefit in your own name, a do-it-yourself approach can give you more flexibility and control when shaping your child’s financial future. You can explore the interest you could earn by putting your child benefit into a savings account, and find out what rate you could secure in exchange for locking your cash away in a fixed term deposit account.

Taking charge of your child benefit Ireland funds allows you to minimise fees and keep more of your money working for your family's future. With Raisin, you have access to a more competitive range of savings accounts from across Europe. Deposits of up to €100,000 per person, per bank are legally protected by the national deposit guarantee scheme of the country where the bank is headquartered.