Hanafin: Current welfare budget not sustainable

The Minister for Social and Family Affairs has said the Government is trying to strike a difficult balance in identifying areas that can be cut in the upcoming Budget.

Mary Hanafin was this morning hearing from people caught in a poverty trap at a meeting of the Social Inclusion Forum and has told participants that the Government must set budget priorities and ensure financial stability.

The Minister said there is no way around the fact that €4bn will have to be taken out of the economy next year.

And she said the social welfare budget - at €21bn - is too high.

"Unfortunately that's not sustainable anymore" Minister Hanafin said.

Taoiseach Brian Cowen added that it was simply not possible to leave the social welfare budget untouched in December's Budget.

Mr Cowen told the Dáil that the idea that 35% of total government spend be immune from consideration doesn't take into account the challenges we face.