Changes in Child Benefit and Early Childcare Supplement - 2009

Changes in Child Benefit (CB) payment

• From January 2009, half rate CB will be paid in respect of children aged 18. From January 2010, CB will not be paid in respect of children aged 18.
• During 2009, the full rate will be paid for the month children turn 18 and half rate will be paid from the following month.
• From January 2010 the full rate will be paid for the month children turn 18 but no payment will be made after that.
• The rate paid is half the normal rate payable, relative to that child's position in the family. 

Example:
This example is based on a family with three children, one 18 in February 2009, another 14 and the third 12 years.

The family gets paid for 3 children up to and including February (2 low rate, 1 high rate).  From March, they still have 3 eligible children but half the low rate is paid for the 1st child, the 18 year old, (as he is the first eligible child). From January 2010, the 18 year old doesn't get paid anymore and the family only have two eligible children, so 2 low rate payments.

 CB compensatory Payment scheme (CPS):

The Minister has announced a new compensatory payment for some customers affected by the changes to the rate of CB payable for 18 year olds from January 2009.  

• This new payment (CPS) will be made for a period of two years, 2009 and 2010, to people who are getting CB for an 18 year old and are in receipt of a Social Welfare payment and getting Qualified Child Increase (QCI) for an 18 year old child or getting FIS and have an 18 year old child. It can also be paid in respect of an 18 year old getting DA in their own right.
• The compensatory payment will be €15 per week, paid monthly. If there are 5 weeks falling in a month, then 5 x €15 will issue for that month.
• The payment will be made monthly to the person getting the CB payment, it is payable in arrears on the 3rd Monday of the month and will be paid in the same way that CB is currently paid.
• The first payment will be in February for entitlements dated in January. January is the first of the 5 week months, the others are April, July, October and December.

For further information see the Child Benefit Scheme Homepage. 

Early Childcare Supplement (ECS):

• ECS will be paid monthly in arrears. With effect from March 2009 the rate will be €83 per month per child up to and including the month the child reaches 5 years.
• People currently getting ECS will get the last quarterly payment of €275 in December, this covers October-December 2008.
• If they are still entitled in January 2009, this will be paid in February. All future payments will be made a month in arrears, so the last payment will be made the month after children turn 5 years.
• In cases where children are born or come to live in Ireland from January 2009, the entitlement to ECS starts the month after they qualify for CB and is then paid a month in arrears.  The last made in the month after the month in which children are 5 years.