The refusal rate for initial applications for the Disability Allowance has risen from 54% in 2010 to 61% in the first quarter of this year.
A spokesperson for Minister for Social Protection Joan Burton confirmed the increase, in response to a challenge from Fianna Fáil to explain what it called "the recent surge in rejections" of applications for the payment.
Deputy Willie O'Dea said if the current trend continues 15,000 applicants will be turned down in 2012 causing enormous distress to the families concerned.
Willie O'Dea highlighted figures showing that in the first third of this year, the Department turned down more than 4,800 applications for Disability Allowance.
He said many of the refusals involve children with very significant disabilities whose families had been receiving the Domiciliary Care Allowance.
Mr O'Dea claimed that once children turn 16-years-of-age and automatically lose that entitlement, the State refuses them the Disability Allowance.
Deputy O'Dea challenged Minister Burton to categorically state that there has been no change in the eligibility criteria for the scheme.
A spokesperson for Minister Burton said the criteria had not been changed and that the scheme is not budget-capped.
The Disability Allowance is a means-tested payment for people who are substantially restricted in undertaking work.
The weekly maximum for an individual without dependents is €188.
