Cut all social welfare, says expert group

ALL SOCIAL welfare payments, including pensions and disability benefits, should be cut, according to an independent experts’ review of State spending that will be given to Minister for Finance Brian Lenihan later this week.

Following its review of Government spending, the three-strong Expenditure Review Committee, better known as An Bord Snip Nua, is proposing up to €7 billion in annual savings – not the €5 billion reported up to now.

The across-the-board welfare cut, though politically toxic, is part of the expert group’s plans to reduce the Department of Social and Family Affairs’ budget by €1.5 billion over the coming 12 months.

Meanwhile, the Minister for the Environment, Heritage and Local Government is preparing to merge several housing agencies reporting to him, including the Affordable Homes Partnership and the National Building Agency.

Rent supplement rates should also be cut, though the group has also recommended that child benefit should be simply cut, rather than means-tested, Government sources have indicated.

The group, led by economist Colm McCarthy, is to hold a final meeting today to conclude its work, and a report should be received by the Mr Lenihan later this week.

However, the Cabinet is unlikely to hold much discussion on the issue when it meets today, though next week’s meeting, or a subsequent one, will be devoted entirely to the issue.

Ministers have yet to decide how they will deal with the results of the committee’s work, though some favour publishing it quickly, if only to avoid a summer of persistent “leaks”, but others fear that publication “could put too many options before people and poison the Lisbon debate”, as one source put it last night.

The numbers in the Permanent Defence Forces should be reduced over time by between 500 and 1,000, which would effectively mean a recruitment and promotions ban for several years.

Rent supplements must be reduced, the experts recommend. Nearly 5 per cent of the welfare budget – €490 million – goes to landlords, nearly double the percentage spent on accommodation by the State a decade ago.

Two Government departments: Éamon Ó Cuív’s Department of Community, Rural and Gaeltacht Affairs and Martin Cullen’s Arts, Sport and Tourism should be “reviewed”, the report recommends.

The nervousness within Government departments about the McCarthy group’s recommendations were illustrated by the Department of Health and Children’s decision to issue a clarification about the numbers it employs.

Over the weekend, Opposition politicians said it employed “over 700”, but the department last night insisted that it employed a total of 470 staff, including 32 staff working on childcare issues transferred from other departments in recent years.

“The figure excludes 53 staff that are employed in the Adoption Board, the Office of the Ombudsman for Children, the Disability Appeals Office and Health Repayment Scheme Appeals Office.

“In 2003 the department had an authorised staffing level of 700 staff however, this number has been reduced in recent years,” said the department, in a statement.