The Ombudsman Emily O'Reilly has said she is disappointed at a Government decision to cut mobility payments to 5,000 disabled people, in response to a ruling from her office.
The Department of Health last night confirmed that it was axing the Mobility Allowance and Motorised Transport Grant with immediate effect.
It has prompted an angry reaction from disability support groups, but the government said it had no choice after the Ombudsman found the scheme discriminated against older people.
The Disability Federation of Ireland has said the Mobility Allowance is means-tested and is mostly paid to people who live on a disabillity allowance of under €190 a week.
Theresa Comagno from Enable Ireland is warning the cut could isolate people with disabilities.
Ms Comagno said: "We are looking here at people who are receiveing state benefit of approximately €190 a week.
"That unilateral decision made about a 20% cut to income to people who are already having difficulty.
"So we are very unhappy about it, we would have been much happier if we had been consulted and maybe we could have encouraged the Government to take a different approach."