Kenny - No decisions yet made on welfare cuts

Taoiseach Enda Kenny today insisted that no decisions have yet been made in relation to cuts to welfare in the upcoming Budget.

His comments follow widespread press speculation that cuts to both child benefit and unemployment assistance may be on the cards come December 6.

Reports have claimed that child benefit may be subject to an across-the-board cut of €10, from the current monthly payment of €140 per child, while a weekly reduction of €8 in dole payments has also been the subject of speculation.

However Mr Kenny today insisted no decisions had yet been made, denying the press reports amounted to "kite-flying" by the Fine Gael-Labour coalition.

"The mandate given to the Government is to sort out the difficulties in our public finances, and to have a governance system that looks after those who are vulnerable" Mr Kenny told Midwest radio.

"At the same time (the system must allow) for us to concentrate on what is fundamental here - and that's getting people back to work."

Minister for Social Protection Joan Burton meanwhile reiterated that everything is up for consideration as the Government seeks to reduce the country's deficit in line with commitments made to the Troika as part of Ireland's bailout package.

The Minister said she wants to honour Labour's pre-election promise not to cut basic welfare rates or child benefit, but conceded that everything is on the table.

"We (the Cabinet) are having extremely detailed discussions, on an ongoing basis, in relation to every item in the Budget," she said.

Minister Burton said she is fighting for cuts to come from other areas, such as employers paying sick pay, and not giving redundancy payments to multi-nationals that move jobs from Ireland.

Labour party colleagues of the Minister had earlier expressed a measure of disquiet over the mooted child benefit cut.

Backbencher Aodhan O'Riordain said a €10 cut in the payment would be a "difficult pill to swallow" if it were not counter-balanced in other ways.

His party colleague Joanna Tuffy meanwhile said Minister Burton should speak to children's groups before the Budget.

"One of the things that I would think what the Minister should do, if she hasn't done so already, is to organise meetings with organisations who have expertise and who are advocates for children, such as Barnardos," Deputy Tuffy said.

"She should sit down with the groups and look at the options in that regard."

Elsewhere, economist Eoin Fahy, a former member of the Commission on Taxation, 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.

"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 going to be hurt by the same amount.

"Nobody in the country, I think, would argue that that actually makes sense.

"It is simply a way of finding a way around these bureaucratic and administrative difficulties."