Sinn Féin leader Mary Lou McDonald has called on the Taoiseach to engage with the British government to express Ireland's support for the proposed Philomena's Law.
The law aims to ensure that survivors of institutional abuse are not financially penalised for receiving redress.
The proposed legislation seeks to introduce an indefinite capital disregard, similar to the Windrush Compensation Scheme, the 7 July 2005 London bombings and those affected by the contaminated blood scandal.
In a letter to Taoiseach Micheál Martin, Ms McDonald said the intention of the scheme was to provide redress payment to former residents of Mother and Baby Institutions in recognition of the time spent in the institutions, the harsh conditions, emotional abuse, other forms of mistreatment, stigma and trauma.
However, as things stand, those living in Britain granted financial payment may lose their entitlement to means-tested benefits as it will be considered as savings, taking recipients over the capital threshold.
Although there are an estimated 13,000 Irish citizens currently living in Britain and Northern Ireland who are eligible to apply for payment under the scheme, to date just over 700 of the survivors have applied.
The letter points out that the campaign to introduce the law is supported by Irish diaspora organisations and survivor services including Irish in Britain, Fréa Renewing Roots, London Irish Centre, Coventry Irish Society, ICAP and Luton Irish Forum.
Ms McDonald added that it was her understanding that Stormont's Minister for Communities would be led by the actions of Westminster on the issue and that any movement on the matter "is also pertinent to Irish citizens in the North".
She has asked the Taoiseach to do "whatever is required" to ensure they access the redress that survivors deserve.
The Special Advocate for Survivors of Institutional Abuse appointed by the Government has said that she is acutely aware of how critical Philomena's Law is for so many people living in the UK who spent time in Ireland’s Mother and Baby Institutions as mothers and children.
Patricia Carey described as "unconscionable" that those who now receive redress would be further penalised by having their essential benefits affected.
Ms Carey said "a human rights based approach" is required to ensure equal access to redress and supports and services for all survivors.
"The principle of 'Leaving No One Behind’, equality and fairness should underpin all redress measures including financial redress," she said.
Ms Carey also commended MP Liam Conlon for introducing the "much needed legislation".
