Welfare cuts top agenda at Cabinet

Social welfare cuts were set to top the Cabinet’s agenda as ministers hammered out details of the budget.

Michael Noonan, the finance minister, along with Brendan Howlin, the public expenditure and reform minister, yesterday addressed the Cabinet — the first time the looming budget had been brought up in the weekly meeting.

A special session today will be devoted to the keynote financial statement, with unemployment benefit and children’s allowance set to figure prominently.

Sources say most of the social protection aspect of the cuts package has effectively been signed-off on by the Economic Management Council of Taoiseach Enda Kenny, Tánaiste Eamon Gilmore, Mr Noonan, and Mr Howlin, and it will be the first chance other ministers have to try and alter it.

One contentious proposal is believed to be to cut the weekly unemployment benefit rate of €188 back from 12 months to nine months.

The cut would see people switching to means-tested jobseeker’s payments three months early. Such a move could save up to €95m annually and impact on 40,000 claimants per year.

Child benefit is also set to be in the financial firing line with across the board cuts in the €2.1bn payment likely as ministers claim it is too complex an area to introduce means testing, or taxation bands into.