Family spending institute Nibud is warning that government plans to reform the housing benefit system will leave some people unable to pay their bills.

The cabinet wants to change the criteria for eligibility so that income, rather a combination of rent and income, is used to determine how much people receive.

Currently, a single person living on welfare benefits in a rent-controlled flat costing €750 per month is entitled to around €375 in housing benefit. In the new system, however, that would go down to €282, Nibud says.

The agency says two-thirds of households currently claiming housing benefit will be worse off by between €15 and €105 per month if the new system is introduced.

Nibud has, however, welcomed the decision to pay housing benefit to people over the age of 20 rather than 22 and to extend the benefit to those living in non-rent controlled properties.