Kenny to consider means tests for benefits

Enda Kenny has refused to rule out means testing child benefit and cutting free electricity, phones, and travel for pensioners.

The move came as the EU accused ministers of “hiding behind” the troika and using it as a “scapegoat” to push forward such deeply unpopular measures.

Plans to slash pensioner entitlement and child benefit costs to the State by means testing them were floated in a document put together by European Commission staff working on the bailout in consultation with the Government.

Mr Kenny — attending an EU summit again dominated by the euro crisis — said that the report would be “reflected on” in the run-up to December’s budget.

Mr Kenny said the summit focused on growth and rescuing the banking sector, but his Government was thrown onto the defensive after an unprecedented public rebuke by economic commissioner Olli Rehn’s spokesman, Amadeu Altafaj, who said any move towards cutting benefits for pensioners and taxing child benefit would be the responsibility of Dublin and could not be blamed on Brussels.

Meanwhile, at an EU summit Spain and Italy were accused of holding the meeting hostage to their demands. They refused to agree to anything, including the growth pact, demanding the long-term and short-term solutions to the euro crisis were addressed together.