The Finance Minister Michael Noonan says it is not the government's plan to scrap USC for all workers.

Mr Noonan says that charges will remain for higher earners so that they do not get the full benefit of scrapping it.

He has confirmed he still wants to get rid of the charge entirely over five years, which would cost over €3.5bn a year.

Fine Gael had been promising to eliminate the charge for all workers - arguing that it had only ever been an emergency measure.

But this morning, Minister Noonan offered a clarification when it was pointed out that the Taoiseach would save over €1,000 a month if the charge was scrapped.