All weekly social welfare payments left untouched

The social welfare budget is to be reduced by €475m next year, a cut of just over 2%.

The rate of Child Benefit will be maintained at €140 per month for the first two children, with €148 for the third child and €160 for the fourth and subsequent children in 2012.

The weekly allowance paid to carers will not be changed while older people will continue to get their State Pension at the current levels.

However, the Fuel Allowance season will be reduced from 32 weeks to 26 weeks while the cost of Education Allowance will fall from €500 to €300.

The Social Protection Minister Joan Burton said, despite the financial constraints, there will be not cuts to primary social welfare rates next year.

Ms Burton said: "The personal rates of all weekly payments such as job seekers benefits and allowance, illness benefit, invalidity pension, disability allowance, blind pension, carers' benefit, carers' allowance, State pensions, widowers pensions and one-parent family payment will not be reduced next year."

“As the biggest spending Department, the Department of Social Protection must play its part in that adjustment,’’ she said.

“Though we are achieving savings, the Department will still spend €20.5bn on social protection in 2012. This is a clear demonstration of this government’s commitment to protecting the most vulnerable in Irish society.’’

Changes to the One-Parent Family Payment were also announced, with the age limit of the youngest child for receipt of payment reducing to seven by 2014.

“The best route out of poverty is through paid employment," Minister Burton said.

"I recognise that work and especially full-time work may not be an option for parents of young children.

"The reforms I am making will give parents of young children the choice of caring for their children.

"If they are still in need of income support when their child reaches age 7, they can then claim a Jobseekers payment and will be provided with the systematic and active supports that accompany that payment."

In addition the rate of the Back to School Clothing and Footwear Allowance will reduce from €305 to €250 for children aged 12 years or more and from €200 to €150 for children aged 4-11 years - meaning it has been abolished for children under 4.

“To appropriately target this payment at school-going children, I am raising the age at which a child is eligible for the Back to School Clothing and Footwear Allowance from 2 to 4 years of age”, said Minister Burton.

The Cost of Education Allowance, the annual grant which accompanies the Back to Education Allowance, will reduce from €500 to €300.