An extra 15,000 places on education, training and work placement schemes will be created to help people get back to work and off social welfare, Minister for Finance Brian Lenihan has said.
He has also announced a 4 per cent cut in social welfare payments to the unemployed and a €10 cut to child benefit payments. He has confirmed there will be no cut to the State pension.
The cuts in social welfare rates include: an €8 per week cut in working age welfare payments; an €8 per week fall in the maximum and minimum rates of maternity benefit and a €2 increase in the amount tenants on rent supplement schemes pay towards their accommodation.
For individuals aged between 22 and 24 years, there will be a reduction of €6 per week in the rate of Jobseeker's Allowance and Supplementary Welfare Allowance.
The rates for people aged between 18 and 21 years will not be changed.
The Government will spend €200 million on the new job creation measures, which will involve an expansion of existing private work placement and community work schemes. The public sector will provide about 5,000 work placement schemes under a revamped National Employment Action Plan in coming months.
Mr Lenihan said the 4 per cent reduction in welfare rates meant working age payments were still slightly ahead of the rates paid in 2007. He said this demonstrated the Government's commitment to those in need and noted that welfare rates in Ireland are still much higher than those in Britain.
Mr Lenihan said child benefit payments would fall by €10 for first and second children to €140 per month. Child benefit payments for third and subsequent children would fall by an additional €10 to €167, he said.
The changes to the social welfare system are expected to generate savings of €873 million in 2011.
Mr Lenihan said an extra €14 million would be allocated to the National Fuel Scheme to help those on low incomes to heat their homes due to the recent bout of cold weather. He said this would result in an additional €40 fuel allowance payment to people benefiting from this scheme.