
Originally Posted by
kerrynorth
According to the Mail on Sunday, and I understand that other papers have similar stories, the Cabinet has agreed to €4billion in spending cuts for 2010 including a 10% cut in the €21.5billion Social Welfare budget. The other big cut is €1.5billion in capital expenditure.
The 10% cut in Social Welfare will not include pensions and the Christmas bonus may be restored to sweeten the bitter pill. However, the cuts will involve the ending of universal children's allowance and in order to achieve an overall 10% cut without hitting pensions the government will have to hit unemployment benefit/allowance by somewhere between 15-20%. That will entail a €30-40 cut in the weekly single rate of €204.30. Meaning the basic weekly rate will be cut to somewhere between €165-175, with pro-rata cuts for couples etc.