Burton refuses to rule out cuts to social welfare payments in budget

Joan Burton, the social protection minister, refused to rule out welfare cuts in December’s budget and said finding savings in her department would pose a “major challenge” for the Government.

Cuts of €540m will be made from her department in 2013 and the minister said making this adjustment “while protecting the most vulnerable in society will be extremely difficult”.

Addressing the Oireachtas committee on social protection, she came under pressure to say whether an earlier promise not to cut welfare rates still stood. She said she was “not at liberty” to say because “no decisions” had been made yet.

Replying to questions from Fianna Fail’s Willie O’Dea, Ms Burton said: “The final details about the budget, like last year, will be made when the minister for finance stands up to announce the budget on budget day.”

Of the €20.5bn to be spent by her department this year, €6.2bn, or one third, will be spent on pensions. This is expected to increase by €200m in 2013 because of the ageing population, Ms Burton said. A further €5.7m will be spent on support for the unemployed including the dole and one-parent family payment.

“We are in a difficult economic situation reflected by the fact that we are still spending considerably more than we take in through revenue,” said Ms Burton.

She said the social insurance fund will have income of €7.1bn this year but expenditure will be almost €8.9bn, the remainder to be financed by the exchequer.

Mr O’Dea said he hoped this “was not a code for saying we have to increase PRSI”.

She said one 10th of unemployed people, about 10,000, called for an interview with welfare authorities under the Pathways to Work scheme stopped claiming the dole before engaging in the process.