Child Benefit Cuts in Budget 2012

Child Benefit  cuts were announced in the December 5th 2011 Budget speech – the lower rates will be effective from  January 2012 and will take  €44.7m  out of  the income of Irish families next year.

Update: Jan 2013 – See the latest Child Benefit rates for 2013

Child Benefit for the first 2 children is remaining the same  (€140 a month) – but the rates for  3rd and subsequent children is being cut .

For some reason –  the rate of child benefit in Ireland is currently  lower for the first 2 children than the rate for the 3rd child and any other children.

Prior to Budget 2012 – the Child Benefit rate for the first 2 children was €140 a month , the rate for a 3rd child was €167 a month  and the rate for the 4th , 5th Child etc was  €177 a month

The rate is  being cut by €19 a month for the third child  – to €148 and  cut by €17 a month for 4th and subsequent children  to €160 a month from Jan 2012.

Child Benefit Monthly Rates – From Jan 2012

Free Business Accounts

First and Second Child  Rate  =   €140
Third Child 2011 Rate  was €167  Reduced by to   €148
Fourth and Subsequent Child 2011  was €177 now reduced to €160

Example : Someone with 4 children will have a  Child Benefit cut of €36 a month – from €624  to €588.  from January 2012

In January 2013 there will be further cuts  – so that all children get €140 a month.
For a 5 child family – this will mean a drop in Child Benefit from  €801 a month  in 2011 to €700 a month by Jan 2013 – this is a fall of  €1212 a year

The rate for the first 2 children was previously cut by €10 a month in Budget 2011 – and the  third child rate was cut by €20 a month and the rate for subsequent children  was cut by €10. See Child Benefit Cuts 2011

In the UK  Child Benefit is higher for the first child – they pay out  £20.30 a week for the first child and £13.40 for each child after the first.
(Monthly equivalents €103 a month and  €68)