Following a review of the exceptional needs payments, the Department of Social Protection announced last week that it will no longer pay the allowance in respect of religious ceremonies.
The SVP said it was too early to ascertain the impact of the decision, but has warned parents to avoid getting into debt.
“While we appreciate the desire for families to make it a special day for their children our advice is seek to take a modest approach and to limit spending as much as possible,” a spokesperson said.
“Avoid moneylenders. The SVP will provide assistance to struggling families where possible and on the basis of need.”
The SVP is spending in excess of €70 million per annum providing assistance to individuals and families in need, with over €7 million spent on food each year and at least €5 million on education.
According to the SVP over 200,000 people are using money lenders.
In 2011 the Government paid more than €3.4 million in Communion and Confirmation grants to over 14,000 families, while in 2012 payments were cut back to €1.5 million for 12,500 families.