Finlay warns of 'devastating' effect of Child Benefit cut

There is increased speculation that the Government is to slash Child Benefit in next month's Budget.

Reports suggest a cut of €10 is being considered by Ministers.

The head of childrens charity Barnardos, Fergus Finlay, is warning of the "devastating" effect that a cut in the payment could have on the level of child poverty.

However, Economist Eoin Fahy, who was a former member of the Commission on Taxation, has said the current Child Benefit system has to change.

Mr Fahy said: "You have to start a multi-year process to get this sorted out in a fair way, because a lot of Child Benefit is going to people who frankly don't need it and the people at the lower end are the ones that do need it and they are the ones that are going to be hurt by the same amount.

"Nobody in the country would argue that that makes sense. It is simply a way of finding a way around the bureaucratic and administrative difficulties."