4 out of 10 families will see their child benefit cut under new proposals being considered by the Minister for Social Protection.

A government-appointed advisory group is recommending a 'two-tier' child benefit system.

It would see only those earning less than €25,000 automatically receiving a full payment.

The model uses the example of a basic payment of €25 a week, rising to €63 a week, depending on income levels.

Chair of the advisory group is Ita Mangan.

She says middle-income families will be most affected.

Meanwhile the Transport Minister Leo Varadkar says no decisions have yet been made on the issue.