Cabinet plans to cut the pensions of elderly people who live with their children have been postponed for a year, news agency ANP says on Wednesday.

The plan, effectively a fine of several hundred euros for carers, was criticised by a wide variety of organisations. Opponents said it was punishing people who decided to look after their elderly relatives and would make people think twice about doing so.

The plan has now been put on hold pending the results of a wider investigation into the situation facing families who take care of elderly or handicapped relatives.

€300 a month

If it had gone ahead, elderly people who moved in with their relatives would have seen their state pension cut from 70% to 50% of the minimum wage – a drop of around €300 a month.

Although there was majority support for the proposal in the lower house of parliament, it was unlikely to get senate support. The u-turn means the government needs to find further savings of €200m to balance its books.