Child benefit payments for more than one million children will increase to €150 a month from this week.
In total, child benefit is being increased by €8.40 a month to €150 for the first and second child, and by €7.70 to €185 for the third and subsequent children.
Minister for Social Affairs Séamus Brennan said that in addition to child benefit increases, more than 350,000 children under six will also qualify for the new childcare supplement announced in December's Budget.
The new payment, worth €1,000 a year, or €19 a week, comes into effect from April this year, but the first payments will be made in August, Mr Brennan said.
It is estimated the scheme will cost €265 million for the first nine months of 2006, and about €360 million for a full year.
The figure of €360 million represents an increase of €7 million compared to the €353 million figure used in the Budget.
This may represent a number of factors, including an increase in the number of foreign EU nationals claiming the benefit following recent publicity over the eligibility rules.
Under EU law, employees from any member state can claim child benefit in the country they are working in, even if their children are living in their home country.
The first payment of €250 per child for April to June will be made in August this year, with further payments in October and December.
No application is necessary for this new support and the payment will issue automatically in the same way as child benefit.
Mr Brennan said yesterday that child benefit increases and the childcare supplement would make a "significant contribution" to the alleviation of child poverty.
"Child benefit is a universal payment that supports all children in all circumstances. However, despite exceptionally high investment in welfare supports, the reality is that we are still confronting the totally unacceptable blemish on the Ireland of the 21st century of having children who endure poverty, deprivation and distress," he said.
"I am now determined to finds ways of channelling additional and targeted resources directly to support these children and their families."