The full year cost of increasing the Working Family Payment income thresholds is difficult to estimate with accuracy given the dynamics of the labour market and wage fluctuations. This also means it is challenging to forecast with accuracy the number of new claimants who would avail of the payment resulting from increases of 10%, 20% or 30% to the thresholds as proposed.
It is also difficult to provide a costing for percentage increases to each Working Family Payment threshold, as this would require costing a different threshold increase for each household size. However, assuming the same threshold increase for all family sizes, in line with increases in recent budgets;
• A 10% increase to the €765 threshold would equate to a €76.50 increase to the thresholds, at an estimated cost of €123m per year.
• A 20% increase to the €765 threshold would equate to a €153 increase to the thresholds, at an estimated cost of €246m per year.
• A 30% increase to the €765 threshold would equate to a €229.50 increase to the thresholds, at an estimated cost of €369m per year.
These estimated costs are based on the number of recipients as at the start of 2026.