O'Sullivan: Welfare reform must continue

The Government has not ruled out the possibility of means testing certain social welfare benefits, according to Labour junior minister Jan O'Sullivan.

It comes after last week's two-day Budget announcement which outlined €1.4bn worth of savings in the areas of Health, Social Welfare and Education.

Despite no overall change to headline Social Welfare payments, families with three or more children will be hit, as the higher rate on children's allowance payments for a third and subsequent children is being phased out over a two year period.

Trade and Development Minister O'Sullivan said reform within the Social Welfare system is needed - but it won't happen overnight.

"I do believe we need to do the reform measures, and some of those take time," she said.

"Co-ordinating the social welfare and taxation systems, and being able to means-test certain things - these things take time.

"What we have to do is protect people on the lowest incomes, and we have to focus on those who can best afford to pay."

Minister O'Sullivan also said that the Government's U-turn on the proposed cut to the disability allowance for young people was the right thing to do.

The measure was announced in the Budget last week, but was quickly quashed, pending a review by the chairperson of the Commission on Social Welfare and Taxation.

Taoiseach Enda Kenny said the Government agreed that the proposal should be reviewed because of the sensitivity of the issue.

Minister O'Sullivan said that both Labour and Fine Gael realised the cut would have hit the most vulnerable the hardest.