The Disabilities Minister says the coalition has come up with every possible solution they could before announcing an end to the Mobility Allowance and Motorised Transport Grant schemes.

Minister Kathleen Lynch says the solution could be devising a proper rural transport scheme.

There is on-going controversy after the government announced an end to the schemes from last night.

Payments to current recipients are to end in June.

The schemes were deemed illegal because they were not available to everyone.

The coalition says the cost of extending them would be €170-€300 million.

"Illegal & obsolete" grants scheme

The Taoiseach has defended the government decision to axe what he says was an "illegal and obsolete" scheme of grants for people with disabilities.

Enda Kenny insisted that a scheme had to be devised that was in compliance with the law.

"We cannot continue with a situation that is illegal, outside the scope of the Equal Status Act, the Disability Act and the Constitution and we've got to deal with that in a fair, equitable and comprehensive way" he said.

"And the monies that have been allocated will continue to be allocated and those people that are in receipt of that this morning will continue for the next four months to receive it" he added.

An expert group has now been established to come up with a solution.

Minister Kathleen Lynch says everything the government came up with was illegal - adding they have agonised over this.