€10 cut in child benefit ‘cruel’ to families

MINISTERS are playing on the fears of struggling families in a “cruel” softening-up operation ahead of another savage budget, critics warned last night.

Leaks that child benefit would be slashed by €10 across the board sparked the outcry, with Barnardos chief Fergus Finlay saying that such a move would “break moral boundaries” and result in children going hungry.

Cabinet Minister Leo Varadkar appeared to confirm the child benefit cut, but said it may be partially offset by increases in other payments targeting the most badly-off families.

That move was branded cynical by opposition parties, who accused the Government of causing despair using manipulation of expectations ahead of the December 6 budget, which will see €3.8 billion worth of spending cuts and tax hikes.

Mr Finlay said that an across-the-board child benefit cut would have severe consequences.

“It will mean hungry children and families unable to cope. It will hit low income families in a hugely disproportionate way.

“Families have already been hit by two cuts and another crude off-the-top cut at this stage will have effects on families that would cross thresholds of morality and cannot be allowed,” he said.

Mr Varadkar said no cut had been formally decided, but then appeared to accept it would happen.

“Bear in mind there are compensatory measures you can take, for example, the child dependent allowance is paid to those on the lowest incomes and that could potentially be increased to compensate for the reduction in child benefit across the board,” he said.

Fianna Fáil finance spokesman Michael McGrath accused ministers of having a “cruel” attitude to low-income families.

“It’s cruel to send out mixed messages like this to hard-pressed families in the run-up to Christmas as part of a deliberate softening-up exercise ahead of the budget. We know things are going to be tough, but they could treat people better than this,” he said.

Labour leader Eamon Gilmore’s election pledge that he would not allow Fine Gael to cut child benefit rates also caused deep unease in his party, with prominent backbencher Aodhán Ó Ríordáin saying that it would be “a particularly difficult pill to swallow, unless it is counterbalanced by some other serious measures that protect the same families”.

But Trade Minister Jan O’Sullivan signalled the cut was on the way, claiming that it was not a ring-fenced social welfare payment.

“We don’t want to have to do this. But certain measures have to be taken and they have to be taken in a way that protects the least well-off as well as we can and that’s the intention of the Government,” she told RTÉ.

Sinn Féin accused Labour of blatant hypocrisy over its election pledges regarding child benefit.

Mr Varadkar said that it was “unfair” for well-paid Cabinet ministers to receive child benefit and major reform would be needed after the budget.