Proposals to means test child benefit payments in the Budget are fundamentally flawed and could force women out of work, a leading lobby group has claimed.

The National Women's Council of Ireland (NWCI) said Government has made no attempt to recognise the costs of childcare to families during the recession.

Orla O'Connor, head of policy, also insisted there was an obsessive focus on cutting child benefit as the only source of savings despite the reported loss of hundreds of millions in the deal to save Anglo Irish Bank.

"For families where women are now the main breadwinner, it will cause increased financial strain and stress on the family at a time when they need most support," said Ms O'Connor.

Social Affairs Minister Mary Hanafin has signalled the Government is considering paying the benefit at three different rates, with the least well-off protected. But Ms O'Connor said families in Ireland are experiencing enormous financial strain due to redundancies, reduced working hours and reductions in pay.

"Childcare costs are second to mortgage payments in terms of family expenditure," she added. "To consider the incomes of families in relation to cutting child benefit without taking this cost into account shows the complete disregard this government has for women, mothers and families. One hundred and sixty-six euro per month child benefit barely covers one week childcare for most families."

Taoiseach Brian Cowen earlier told the Dail all options in relation to social welfare payments were being considered. He warned the social welfare bill was expected to hit 21.5 billion euro for the year, while just 26 billion was taken in to the end of October.

"The Government is very conscious that this is an area for very careful consideration, but the Deputy knows that he can't expect me to outline any aspect of the budget, particularly when decisions haven't been taken," added Mr Cowen.

The NWCI said it backed announcements by Fine Gael leader Enda Kenny and Labour's Eamon Gilmore that they would ring-fence the child benefit and find alternative ways to make savings for the Exchequer.

"The fact that child benefit is the only payment that parents have to pay for all of the costs in relation to children is a result of failed Government policy with regard to childcare both inside and outside of the home," added Ms O'Connor.