Hanafin confirms child-benefit changes on way

The Social and Family Affairs Minister has given the clearest indication yet that child benefit payments will be cut in next month's Budget.

In a TV interview last night, Mary Hanafin declared: "There will be savings out of the child benefit budget."

She indicated three different bands of child-benefit payments may be applied.

It is unclear whether the Government intends cutting the payments, removing them from some recipients or means-testing them.

Minister Hanafin also said she could not guarantee that pension payments would escape cuts if it meant placing the burden on families who found themselves unemployed.