TV3: Cabinet Agree 10% Child Benefit Cut

Tonight, TV3 News at 5.30 revealed what they claim was agreed at cabinet today regarding next weeks budget. According to them the following is set to be announced next week:

- Child Benefit to be cut by 10%

- All social welfare benefits to be cut by about 5%

- Public sector pay cut of 5%

Means-testing and taxing of child benefit for higher earners has been ruled out but those on social welfare will be entitled to apply for a compensation payment.

Minister for Finance Brian Lenihan intends to announce that all social welfare benefits, except the old age pension, will be cut by about 5%.

All other benefits will be cut by about five per cent.

Unemployment benefit for under twenty threes will fall by twenty per cent.

The €4bn worth of savings will break down like this:

€1bn from the public sector pay and pensions bill
€1bn from social welfare
€1bn from capital spending
€1bn from departmental spending

As a result, public sector workers are facing a pay cut of 5%

At present there is no plan for the third rate of tax for high earners.

Healthcare will become significantly more expensive for everyone.

A 50 cent prescription charge will be introduced for medical card holders
A&E charges will go up
Drug payment threshold will go up