The International Monetary Fund (IMF) says the Government needs to consider taxing or means testing social protection payments such as child benefit.

In a statement marking the end of a week-long IMF mission to Dublin, the fund has highlighted social protection, education, healthcare and the public wage bill as areas where savings could be made.

In its latest assessment of Ireland the fund says social protection spending needed to increase during the crisis, but that savings need to be made now.

The IMF warns that some universal payments such as child benefit should be means tested or taxed, as a statement from the fund called today for Ireland to put “the public debt burden firmly on the downward path.”

IMF mission chief for Ireland, Craig Beaumont, said at a press conference in Dublin today:

“We’re not suggesting cuts in social protection across the board. We believe there could be some savings form a targeted approach but definitely leaving full protection for low income households.

“We’ve commented in the past on child benefit and that would be the most obvious to consider further targeting,” he said.

Beaumont also said the scope for pay increases in the public sector is limited.

“There is in fact very limited room in the budget for a hike in wages. These are mattes to be discussed by the government and by the relevant unions.

“The overall fiscal situation indicates modest room for any significant rise in the wage bill,” Mr Beaumont said.

The IMF mission to Dublin has been in the city for the past week for the 2015 Article IV consultation discussions, with today’s press conference marking their concluding statements on Ireland’s situation.

In its end of mission assessment of Ireland the fund also says it fully supports the proposed new mortgage rules from the Central Bank and will make further comment when they are formally announced.