Minister for Social & Family Affairs Mary Hanafin has confirmed that child benefit and social welfare payments will be cut in the forthcoming Budget.
The McCarthy report, published in July, had identified cuts of €1.8bn in the social welfare budget.
Each Cabinet minister has been asked to look at their department to see where cuts can be implemented.
Speaking on RTÉ's Morning Ireland, Ms Hanafin conceded that child benefit payments and social welfare would not escape the axe, but said she would work to protect the most vulnerable.
She described the €21bn social welfare bill as a huge drain on the public finances.
'It would be impossible to have a budget that would make savings across expenditure, without looking at social welfare,' she said.
Ms Hanafin also refused to confirm if child benefit would be means tested or taxed.
It was earlier revealed by the minister that extra staff will be recruited to help deal with the increasing number of people who are in financial difficulty and in need of advice.
The minister announced that additional money advisors will be appointed to 19 of the busiest Money Advice & Budgeting Service offices around the country, with immediate effect.
It brings to 271 the number of money advice staff working in 65 locations.
Ms Hanafin said there have been 10,000 extra clients this year alone and that the largest percentage are people between 26 and 40, who have run up debts of about €15,000.
Meanwhile, Bord Gáis has confirmed a 14% rise in the number of customers disconnected every month for not paying their gas bills.
Disconnections have risen from up to 350 per month last year to 400 per month this year.
A spokesperson for the company said that disconnection was a last resort and customers are given every opportunity to pay their bills.
In relation to MABA, the spokesperson said only 3% of MABS' clients come to them with energy bill problems.
