The head of children's charity Barnardos has said the increase to child benefit is "very welcome".
The €130 monthly payment per child will increase by €5 next year and a further €5 in 2016.
Fergus Finlay said that while the €5 increase per child in both 2015 and 2015 did not off-set the cuts to the payment in recent years, it was still a very positive development.
"I'm genuinely relieved and pleased," he said. "Today the Government, I hope, stopped that downward spiral - not just no cut to child benefit, but a small increase.
"Of course I'd have liked more, but I think the fact that better child benefit is back on the agenda is a good start."