The Independent Alliance is calling for a 'Granny Grant' to be introduced in the Budget.
The €1,000 annual payment would be given to grandparents who care for their grandchildren for more than 10 hours a week, while their parents are at work.
The group proposed it during the Government's pre-Budget negotiations.
The 'Grandparent and Grandchild Expenses Reimbursement Scheme' would be operated by the Department of Social Protection.
Applicants would be required to submit a form to the department seeking compensation for the costs of childcare, such as fuel and food.
Minister Shane Ross said the payments would recognise the important role that grandparents play in childcare.
Speaking to the Irish Independent, he said:
"The payment is aimed at recognising that grandparents allow young mothers and fathers re-enter the workforce by giving their children care they would not get anywhere else and which comes at no cost to parents or the State. This is something that should be encouraged and the reward is significant."
Similar schemes exist in other countries.
It's thought almost 70,000 grandparents here could be eligible for the grant.
