Opposition: Draft bailout deal signals welfare cuts

CUTS to child benefits, disability allowances and other social welfare payments are signalled in the Government’s draft deal with the EU/IMF, opposition parties warned last night.

The blueprint memorandum of understanding between the coalition and the country’s paymasters puts more flesh on the agreement announced last month.

The document heralds an overhaul of welfare payments within the next year as it states the present system is open to “abuse” and “creating poverty traps”.