The Tánaiste Joan Burton has said a reform programme is the way to deal with the Universal Social Charge.

People will pay a little less in the change in their pay packets from the New Year following the last budget announcement.

Enda Kenny said he hopes the reduction can be repeated for Budget 2016, but said the USC, which brings in more than €4bn per year, is here to stay.

"If we make the same range of adjustments (next year), you will have practically 500,000 (a quarter of the work force) exempt from the USC, which is very significant," he said.

"Depending on the strength of the economy, that's where we want to be. That's our intention.

"It's not possible to just abolish the USC."

Joan Burton agreed, and added: "The USC is a very significant tax revenue for the Government and to suggest it could be abolished overnight without any replacement revenues would be simply to try to mislead people."