Minister for Social & Family Affairs Mary Hanafin has said three options are currently being looked at in cutting the €2.5bn child benefit budget.
The Minister said that while the Department of Finance wants to tax or means-test the benefit, the McCarthy report has said it should be cut and her department wanted to ensure that it does not provide a disincentive to work.
Ms Hanafin said all three options are being looked at and they all pose certain difficulties.
She said she wanted to ensure that whatever cuts are introduced do not hit the most vulnerable.
