Taoiseach Micheál Martin has given a strong signal that there will be a new specific, targeted measure in the Budget to combat child poverty.
Speaking at a summit on child poverty in Dublin, he said there would either be a second tier of child benefit or an "equivalent" measure.
Research from the Economic and Social Research Institute (ESRI) published on Tuesday showed that one in five children are living below the poverty line after housing costs are taken into account.
Mr Martin met with Minister for Social Protection Dara Calleary last night to discuss the package of measures.
He said it was complex to target a new measure correctly to ensure those already in receipt of certain payments do not lose out.
The ESRI's report, produced in partnership with Community Foundation Ireland, ranked Ireland 16th out of 27 European Union countries for child poverty rates after housing costs.
The current rate differs little from figures recorded between 2007 and 2009, when the financial crash was unfolding.
The report shows a decline in average incomes when adjusted for household size and inflation.
Between 2021 and 2023, real incomes decreased by 0.6%, leaving them 3.3% below their 2021 levels.
The decline occurred despite nominal incomes rising by 11.3%, as inflation outpaced income growth, increasing by 14.6% over the same period.
Inflation has been even higher for lower-income households according to the report, with light, heat and groceries making up a larger share of their total expenditure.
