Cowen fails to rule out pension cut

Taoiseach Brian Cowen has refused to rule out a cut in the old-age pension in December’s budget.

Taoiseach Brian Cowen has refused to rule out a cut in the old-age pension in December’s budget.

Mr Cowen said today while the Government would seek to protect the most vulnerable in society, the country's budget deficit had to be brought under control.

"There will be further adjustments to be made in our budgets. We are borrowing €400 million a week in this country and everyone knows that is not sustainable. And a contribution will be made."

In last December's budget, pensioners were one of the only groups to escape reductions in the social welfare budget.

Yesterday Minister for Social Protection Eamon Ó Cuív said he could not exclude one particular group from cuts on the grounds of their age.

"I am not ruling anything in or anything out in relation to social welfare changes, until I have all the information and [have] looked at all of the parameters," he said.

"Pensions have to be taken into account in the mix. They are €5 billion of the €22 billion we pay out of the social welfare budget.

"I'm not saying they will be cut, but I cannot also rule out absolutely the possibility that they might be" he said on Newstalk.

Mr Cowen said today no decisions had been made with regard to the next budget and that Mr Ó Cuív had started a consultation process with stakeholders.

Fine Gael's spokeswoman on social affairs Olywn Enright today accused the Government of targeting the most vulnerable in society to make savings.

"It's deeply depressing that just a few weeks into his new job as Minister, Eamon Ó Cuív is already talking about cutting pensions," she said. She said the social welfare system was in urgent need of reform, but that cutting pensions was the wrong approach.

Older and Bolder, an organisation campaigning for older people, was also highly critical of Mr Ó Cuív's comments.

Minister for Finance Brian Lenihan earlier this week told his Cabinet colleagues that they must find departmental cuts of €3 billion within a month.