The Cabinet today discussed proposals to cut up to €5 billion from Government spending.
The Government is considering the recent report of the so-called An Bord Snip Nua led by economist Colm McCarthy.
Despite criticism of proposals to cut social welfare contained in the report published last week, Taoiseach Brian Cowen said at the weekend nothing could be “immune” from examination.
A minimum of 17,358 public sector jobs would be eliminated and all social welfare payments would be reduced by 5 per cent under the proposals outlined in the McCarthy report.
Although the group says the education and health systems should bear the overwhelming burden of the job cuts, the biggest financial cut would come from the social welfare budget. This would be cut by €1.85 billion from €21 billion.
The group says there is a clear case for social welfare rates to be “adjusted downwards” in line with economic developments, pay reductions and lower prices in the wider economy. The general 5 per cent reduction in all social welfare rates would save €850 million in a full year.
To save €513 million, the group called for the introduction of a new standardised monthly child benefit payment of €136. This cuts by €30 the monthly payment for the first two children in a family and cuts by €67 the payment for each successive child.
The group said €100 million could be saved by phasing out “second” welfare payments such as the half-rate carers’ allowance, the half-rate illness benefit and the half-rate jobseeker’s benefit.
Following the report's publication, Mr Cowen urged people to face the economic crisis with “renewed fortitude and courage”, saying Ireland needed a “major national effort” to get through the recession.