No budget cuts to basic social welfare, says O'Dowd

THE GOVERNMENT has insisted there will be no cut in primary social welfare payments when the budget is announced next month, but indicated areas such as rent allowance payments were being examined.

Minister of State with responsibility for the New Era Project Fergus O’Dowd last night confirmed basic benefits paid to those on social welfare would not be reduced on December 6th.

“The primary social welfare benefits – there will not be a cut. We are dealing specifically with fraud and we’re also looking at issues around rent allowance and so on,” said Mr O’Dowd.

“The incentive must be . . . an intervention where people aren’t taking opportunities to go out to work . . . and if it’s reasonable that they should [go out to work], well then their benefits should be cut.”

Mr O’Dowd was speaking on The Week In Politics programme on RTÉ One last night.

The high-spending Department of Social Protection, which has a budget of €21 billion, has been identified by the Department of Finance as an area where savings could be made. The Government believes it can save some €600 million by cracking down on social welfare fraud.

However, Minister for Social Protection Joan Burton has said no decision has yet been made about cuts to her department’s expenditure in the upcoming budget. Last week she said the Cabinet had not yet held a detailed discussion in relation to Social Protection.

Ahead of the budget, a White Paper on receipts and expenditure for 2012 will be published on December 2nd.

A Comprehensive Expenditure Report on December 1st will set out the outcome of the Comprehensive Review of Expenditure along with the multi-annual expenditure ceilings for each Department for 2012-2015 and the Budget Estimates for 2012.