Ireland to drastically cut public sector pay

10 Dec 09
Ireland’s finance minister, Brian Lenihan, has introduced a budget seeking to save €4bn, with the bulk coming from spending cuts rather than extra taxation
By David Meilton

10 December 2009

Ireland’s finance minister, Brian Lenihan, has introduced a budget seeking to save €4bn, with the bulk coming from spending cuts rather than extra taxation.

The measures, proposed on December 9, included €1bn in cuts to public service pay, ranging from 5% for the lowest paid to 15% for the most senior staff.

Cuts in Jobseekers’ Allowance and Child Benefit were also proposed, as well as reductions in disability benefit and carers’ allowances.

Lenihan said it was ‘the last of the very difficult budgets’. The Irish economy was well placed to recover, he claimed.

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