Ireland has introduced an important update for parents returning to work. Families with children can now receive up to €2,600 each year under a revised government support plan. This move aims to ease the financial pressure on families as they move from welfare to paid work.
The government has improved the Back to Work Family Dividend (BTWFD) scheme to help working parents stay financially stable during their transition. With higher weekly payments depending on the child’s age, this change is set to benefit thousands of households across the country starting 2025.
This increase is not just about giving extra money. It’s about supporting parents as they rebuild their lives with a new job. Families who qualify will now find it easier to make the shift from depending on welfare to earning their own income again. Let’s look at how this works, who can apply, and what steps to take.
Higher Payments Mean More Support for Parents
Under the updated rates, families can receive weekly payments for up to two years:
For each child under 12 years old:
- Year 1: €50 per week
- Year 2: €25 per week
For each child aged 12 or older:
- Year 1: €62 per week
- Year 2: €31 per week
The payment is available for up to four children per family. That means families could receive a maximum of €2,600 per year, making it easier to manage daily expenses while adjusting to employment.
What is the Back to Work Family Dividend (BTWFD)?
BTWFD is a government payment to help parents who are moving from welfare to work. It is meant to reduce the money gap that often happens when welfare stops and a new job begins. It helps parents adjust without losing all financial help suddenly.
The payment lasts two years. In the first year, you get the full amount per child. In the second year, you get half. The best part is that it is tax-free and doesn’t affect other benefits like:
- Working Family Payment
- Maternity or Paternity Benefits
Who Can Apply for This Benefit?
To be eligible for BTWFD, a parent must meet the following conditions:
- You must have at least one dependent child.
- You must have been getting:
- Jobseeker’s Allowance or Benefit for at least 12 months (including 6 months in the last year), or
- One-Parent Family Payment (OFP), or
- Jobseeker’s Transitional Payment (for lone parents with children aged 7–13).
Once you stop receiving these welfare payments, you must start working or become self-employed within 4 weeks. Your new job must be in Ireland.
Some people can also count time spent in other government schemes to meet the 12-month requirement. These include:
- Community Employment
- Tús
- Rural Social Scheme
- Back to Education Allowance
- Job Initiative Scheme
Parents whose OFP ended because their child aged out of eligibility can still apply, as long as they are not receiving another main welfare payment.
Other Important Payment Rules
BTWFD is not given if you or your partner are still getting a primary social welfare payment or enrolled in a full-time employment or training program.
However, you can receive BTWFD with:
- Child Benefit
- Working Family Payment
- Back-to-School Clothing and Footwear Allowance
- Additional Needs Payment
- Guardian’s Payment
- Rent Supplement (this support does not count as income)
If the parent becomes ill or injured, the payment can still continue for up to 36 days along with Illness or Injury Benefit.
The scheme supports working parents for two full years, as long as they stay employed. If you lose your job during that time, the support stops. But it can start again up to two more times within that two-year period if you return to work.
Step-by-Step Guide to Apply
Here is how you can apply for the Back to Work Family Dividend:
- Get the Application Form – Pick it up from your nearest Intreo Centre or download it from citizensinformation.ie.
- Fill Out the Form – Provide all the necessary details about your new job and your children.
- Prepare Documents – Include proof of employment, your children’s details, and past welfare records.
- Submit Everything – Hand in the completed form and documents to your local Intreo Centre or Social Welfare Office.
- Get a Decision – If your claim is approved, payments begin from the date you apply. If there are delays, your payment may be backdated up to 6 months.
- Appeals – If your application is denied, you can send an appeal to the Social Welfare Appeals Office.
Special Rules for Older Adults
People aged 66 or older who are delaying their State Pension (Contributory) can still apply for BTWFD until they turn 70, as long as they meet all other rules. These applications must be done using paper forms only.