Back to Work Family Dividend Ireland — Keep Child Payments When You Return to Work
Back to Work Family Dividend in Ireland
The Back to Work Family Dividend lets you keep the child-related portion of your welfare payment for 2 years when you return to full-time work. For a family with 2 children, this can be worth €116 per week in year one — on top of your wages and Working Family Payment.
Back to Work Family Dividend — At a glance
- Year 1
- 100% of child element
- Year 2
- 50% of child element
- Min. time on welfare
- 12 months
- Employment type
- Full-time (not self-employed)
- Taxable
- No
- Combinable with WFP
- Yes
Key facts — Back to Work Family Dividend 2026
How the Back to Work Family Dividend works
When you receive Jobseeker's Allowance (or another qualifying payment) with dependent children, your payment includes a weekly Qualified Child Increase — typically €58 per week per child under 12, or €65 per week per child aged 12 or over (2026 rates).
When you take up full-time employment, you lose your welfare payment. The Back to Work Family Dividend lets you keep that child element for 2 years:
- Year 1: You receive 100% of the child element you were getting
- Year 2: You receive 50% of the child element
- After 2 years the payment stops
Example: Family with 2 children
| Period | Children | Weekly BTWFD | Annual value |
|---|---|---|---|
| Year 1 (full rate) | 2 children under 12 | €116/week | ~€6,032 |
| Year 2 (half rate) | 2 children under 12 | €58/week | ~€3,016 |
| Total 2-year value | ~€9,048 |
Who qualifies?
- You must have been receiving a qualifying welfare payment for at least 12 months
- You must have at least one dependent child (Qualified Child Increase in your payment)
- You must take up full-time employment (minimum 38 hours per fortnight)
- You must not be self-employed
Qualifying payments include: Jobseeker's Allowance, One-Parent Family Payment, Disability Allowance, Blind Pension, Farm Assist, Back to Education Allowance (while on Jobseeker's), and some others.
How to apply for the Back to Work Family Dividend
- Tell your Intreo Centre you are starting work
Contact your local Intreo Centre as soon as you know you are starting a new job. They can confirm your eligibility and start the process.
- Complete form BTWFD1
Available from gov.ie or your Intreo Centre. You will need your employer's details and your employment contract.
- Combine with Working Family Payment
If your new wages are low relative to family size, also apply for Working Family Payment. Both payments can be received at the same time — ask your Intreo case officer.
Frequently asked questions
What is the Back to Work Family Dividend?
A transitional payment that lets families keep the child-related portion of their welfare payment for 2 years after returning to full-time employment. Year 1 = 100%, Year 2 = 50%.
How much is it worth per child?
Approximately €58/week per child under 12 in year 1 (the Qualified Child Increase rate). A family with 3 children could receive €174/week in year 1.
Can I be self-employed and get this payment?
No. The Back to Work Family Dividend requires you to take up full-time employment (paid work) — not self-employment. A similar payment exists for self-employment called the Back to Work Enterprise Allowance.
Can I get it alongside Working Family Payment?
Yes. Both payments can be received simultaneously. This is one of the best financial transitions from welfare to work — your combined income can be significantly higher than welfare alone.
How long do I need to be unemployed before I qualify?
At least 12 months on a qualifying welfare payment such as Jobseeker's Allowance, One-Parent Family Payment or Disability Allowance.
Does it affect tax credits?
The Back to Work Family Dividend is tax-free. It does not affect your income tax or USC liability. It is not counted as income for other welfare means tests.
- BTWFD only applies to full-time employment — self-employment does not qualify. If you are starting a business, look at the Back to Work Enterprise Allowance instead.
- You must have been on a qualifying payment for 12 continuous months — not just any period on social welfare. Breaks in the claim can reset the clock.
- BTWFD can be combined with Working Family Payment — many people don't know this. Together, they can make a return to work financially much more worthwhile.
- The payment is based on the child element in your welfare claim, not a fixed amount per child. The amount depends on how many children and their ages were on your claim.
- BTWFD is not taxable and does not count as income for other welfare means tests, including Working Family Payment.
- After 2 years, the payment stops. Many families are surprised when it ends — plan your budget around this from the start.
This page was reviewed against official Irish government guidance and updated to reflect 2026 Back to Work Family Dividend rules and eligibility.