Senior figures in Fine Gael and Fianna Fáil have poured cold water on the plan, championed by Green Party leader Roderic O’Gorman, for a quadruple payment of child benefit in the first month of a newborn’s life.
‘I don’t think it can be afforded – something else would have to be sacrificed to pay for it’
Public Expenditure Minister Paschal Donohoe is understood to believe the proposal is not targeted enough at the most disadvantaged children in society and feels there are better ways to address child poverty.
There are also concerns over the cost of the “baby boost” and the impact the scheme would have on other budget measures.
A senior Fianna Fáil source said: “I don’t think it can be afforded under the limitations of the Summer Economic Statement — which sets out spending levels for the budget.
“Fianna Fáil are not against it in principle, but it’s a new policy development that would have to go into base spending — so the cost of it in Budget 2025 does not look possible. Or at least something else would have to be sacrificed to pay for it.
“Child poverty has to be tackled and the more mainstreamed and targeted it is the better. It should be across all State systems as a priority not just piecemeal,” the Fianna Fáil source said.
However, Mr O’Gorman is continuing to pursue the payment in budget talks, with a senior party source saying they are “continuing to work on getting this over the line”.
Heather Humphreys wants a €15 increase in the State pension
Social Protection Minister Heather Humphreys publicly said she is supportive of the baby boost payment and said she previously looked at developing a similar scheme.
However, she did not pitch an enhanced child benefit payment as part of her budget negotiations with Finance Minister Jack Chambers and Mr Donohoe.
It is expected there will be a double payment of the child benefit to all parents before the end of the year.
Meanwhile, Humphreys is set for a budget row with her Coalition colleagues, after it emerged she is pushing back against increasing the weekly rate of jobseeker’s allowance at the same level as the state pension and other welfare payments.
A number of social welfare payment increases are on the table
The minister is proposing a €15 increase to the state pension and other benefits such as the carer’s allowance and disability payments.
But she is insisting there is not a case for increasing jobseeker’s allowance at the same level — as this would mean there would be less funding for other welfare supports.
The Green Party and Fianna Fáil believe all weekly payments, including the jobseeker’s allowance, should be increased at the same rate.
A Fianna Fáil source said excluding jobseekers from budget increases would “backfire” and put more people into poverty, due to cost-of-living challenges which have worsened in recent years.
The Sunday Independent understands that the Coalition leaders held budget discussions last week, but won’t sign off on the final package of measures until next weekend.
A government source said that among the measures thought to be guaranteed are the proposed cut to college fees, and the permanent reductions to school transport costs.
A €1.5bn cost-of-living package is being considered, less than last year’s €2.3bn package.
The source also confirmed that a number of social welfare payment increases are on the table, including a once-off payment of €200 to people getting the living alone increase and a once-off payment of €300 to people getting fuel allowance.
