Around 3,500 families had the payment of their child benefit and childcare supplement cut off just weeks before the beginning of the school year, it has emerged.
The Department of Social and Family Affairs ceased the payments when it became aware it did not have addresses for thousands of parents who had moved residence in recent months.
The move has sparked anger among parents affected who say the combined payment - worth around €400 per child under six - was of vital importance in the days leading up to the new school term.
Payment of the benefit will resume shortly for 1,000 parents who have contacted the department in recent days asking why the payments had been stopped. These parents have since provided new contact details to the department.
But a further 2,500 parents who have not contacted the department with new details have yet to have their payments restored.
The issue initially arose when around 5,000 circulars sent out last February informing parents about the new €1,000-a-year childcare supplement were returned to the department because the intended recipients were not at the listed addresses.
A department spokeswoman said officials spent six months either waiting for parents to provide updated address details or trying to contact parents.
During this time about 2,500 parents contacted welfare officials to provide details of their new address.
However, officials decided to cut off payment of the benefit to the remaining 3,500 parents at the beginning of August.
The spokeswoman said the circular was not conceived of as a "control measure", but officials decided to act on the matter given the volume of returned information leaflets.
One parent who had her child benefit and child supplement cut off expressed anger yesterday at the manner in which the payments were stopped.
The mother of one, who declined to be named, said:
"I feel angry. It's desperately unfair, particularly for someone trying to send their child back to school. It costs hundreds of euros for schoolbooks and uniforms."
She added: "I tried to contact the department about my change of address without success. Anyone who would have tried to make a real effort would have found the phones were engaged.
"They made no effort to contact me, as far as I can see. There was no warning whatsoever that I was going to lose the child benefit."