Noonan stands over increase in PRSI

Michael Noonan has defended a hike in PRSI contributions, insisting that people will benefit in the long run.

As Taoiseach Enda Kenny said the Government had ensured the richest wouldcontribute the most, the finance minister claimed low earners would still be hit.

Most workers will be forced to pay an extra €5 a week after the scrapping of the standard PRSI allowance, which was one of the headline cuts and tax increases unveiled among €3.5bn worth of austerity measures.