As expected – the rate of Child Benefit was reduced in Budget 2013 – the new rates will apply from this month – January 2013 . The payments made in the first week of Jan 2013 will be at the new lower rates .
Many people will be surprised to see their new child allowance payment in 2013 – because most people will be expecting the cut to be just €10 a month per child . This is the figure that was publicised by most of the press. But the reality is that child benefit has been cut by as much as €20 a month for some children in larger families. This is because of cuts that were already due to happen because of the previous budget . See https://www.moneyguideireland.com/child-benefit-cuts-in-budget-2012.html
For the first 2 children child benefit has been cut by €10 a month — from €140 per month to €130 per month . The rate for the third child has been reduced by €18 a month from €148 to €130
The rate for the fourth and each subsequent child is now €140 per month from January 2013 . That is a cut of €20 a month . (Previously the rate for the 4th , 5th Child etc was €160 a month )
The original plan was for child benefit to eventually be a flat rate for all children – so in 2014 the monthly rate in respect of the 4th and subsequent children will probably be cut to €130.
Summary of Child Benefit Changes January 2013
No. Children 2012 Rate 2013 Rate Drop
One 140 130 10
Two 280 260 20
Three 428 390 38
Four 588 530 58
Five 748 670 78