Parents who are receiving the pandemic unemployment payment (PUP) will be entitled to claim the back to school clothing and footwear allowance for their children.
The Department of Social Protection is almost trebling last year's investment for the scheme, which is available to parents receiving a social welfare payment.
Just under €153 million is being made available for the allowance this year, up from €53.7 million last year.
The allowance is worth €150 for a child aged between 4 to 11, and €275 for a teenager or young adult aged 12 to 22 in full-time education.
More than 274,000 people received the pandemic unemployment payment this week, meaning thousands of families are likely eligible for the allowance this year.
Social Protection Minister Heather Humphreys said people need to get their applications in as soon as possible.
She said: "There are thousands of people on the [PUP] payment. They've never received the [allowance] before.
"It's a payment they will get to help them towards the cost of fitting their children out with uniforms and footwear to go back to school."
Children's charity Barnardos is welcoming the move.
CEO Suzanne Connolly said it will take a lot of pressure of many families.
She said: "I'm absolutely delighted that the Department has thought about the needs of parents and children, who are caught up in a situation through no fault of their own."
Parents are being asked by the government to apply online by the 30th September.
