Allowances in public sector pay cut by 20%

NURSES, gardaí, teachers and other public sector workers will see their allowances slashed by a fifth over the next three years.

Overtime and premium payments will also be reduced by 15% by 2015 under plans announced by Minister for Public Expenditure and Reform, Brendan Howlin.

He said the Croke Park Agreement — which pledges not to cut public pay in return for more efficiencies — must deliver more and has “a long way to travel yet”. In the new year, his department will start a review of allowances and premium payments across the public sector to cut the €1 billion annual bill.