THE GOVERNMENT is examining radical options to cut spending on social welfare by tightening eligibility rules for State benefits, according to internal briefing papers.
Officials have warned, however, of potential problems over reducing payments for existing claimants who have expectations regarding the value or duration of their welfare benefits.
Among the measures included in an options paper prepared for Minister for Social and Family Affairs Mary Hanafin on ways of tightening eligibility for welfare schemes are:
- Means-testing payments for dependants of recipients of social insurance-based payments, such as the job seeker’s benefit, carer’s benefit and State contributory pension;
- Abolishing the entitlement to two social welfare payments at the same time, eg lone parent’s allowance, the half-rate carer’s allowance and widow/widower’s payments
- Abolishing or reducing additional allowances, such as the “living alone allowance”, paid to older people on social welfare;
- Axing the universal entitlement of over-70s to household benefits such as a free TV licence; telephone allowances; electricity allowances;
- Reducing payments such as fuel allowance and household benefits such as electricity and gas benefits.
The briefing papers were drawn up in the weeks before the most recent budget.
However, Government sources say these options will still be on the table given the ongoing deterioration in the public finances.
Ms Hanafin has insisted that basic welfare payments will not be cut, but has hinted that any reductions are likely to focus on spending “around the edges”.
The details of the briefing papers were released under the Freedom of Information Act. They were initially refused by decision-makers, but released on appeal to The Irish Times.
Meanwhile, Opposition parties have started to engage with the Department of Finance over proposals for the forthcoming budget, which is expected in early April.
Labour leader Eamon Gilmore said yesterday that the party was seeking detailed information on the cost of various options which it is considering. A Fine Gael spokesman said the party would also produce a pre-budget document, but would mainly be relying on its own expertise to arrive at its costing.
Sinn Féin is also expected to unveil its pre-budget document shortly.
The Commission on Taxation also finished briefing Opposition parties yesterday about its work to date. It was due to report in September but has now agreed to report in July.