Kenny confirms shake-up of welfare system

TAOISEACH Enda Kenny said there would be a shake-up of the social welfare system over the coming months, but basic rates of the dole would remain untouched.

Following the successful reduction of Ireland’s bailout interest rate last week, Mr Kenny also said that no area would escape cuts.

Speaking at the McGill Summer School in Donegal, Mr Kenny said too many of yesterday’s taxpayers were today’s welfare recipients.

Over the coming months the Government will be announcing changes to welfare, employment and training systems.

Mr Kenny told reporters that the headline rates of welfare would remain untouched, as agreed in the Programme for Government. But the Government is under pressure to reduce the welfare bill by at least €750 million by the year’s end, as agreed under terms of the EU/IMF bailout deal.

“We’re spending between €18 billion and €20bn [in general] more than we’re taking in and we have to deal with this. People who refuse to take up meaningful training courses, meaningful upskilling or jobs, will have their social welfare cut and that process has already started. We have 450,000 on the register with 300,000 unemployed,” he said.

Recent figures show only 50 welfare recipients have had their dole reduced under a new tougher system since April.

However, Mr Kenny’s comments last night would suggest the harsher measures to cut the welfare bill will affect many more dole recipients, as the Government moves to reduce spending overall.

Mr Kenny said the spending review, the recent jobs initiative and the overhaul of the banks would all help the economy.

He also indicated that, despite annual savings of €800m on the bailout interest rate, a tough budget still lay ahead.

“Let me tell you quite bluntly we are not going to use the downsizing of the debt burden on us from this week to soften the difficulties that we face with our budget at the end of the year.”

Meanwhile, Mr Kenny also revealed that he had received thousands of messages following his critical comments about the Vatican last week and the issue of covering up abuse.

He had received over 2,500 messages from around the world.

Hundreds of parish priests in Ireland had also thanked him for his comments.

“I’ve had several hundred messages from parish priests around this country who said ‘it’s about time somebody spoke out like this. We do our duty to the best of our ability’.”

Mr Kenny said the Government was still awaiting a reply from the Vatican.