Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The overall concern in recent years has been to protect the value of weekly social welfare rates. Expenditure on pensions, at approximately €7 billion, is the largest block of expenditure in my Department's Estimate for 2016, representing approximately 35% of overall expenditure. Due to demographic changes, my Department’s spending on older people is increasing year on year. Maintaining the rate of the State pension and other payments is critical in protecting people from poverty.

The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. These savings meant that my Department was able to retain the other valuable elements of the household benefits package such as the electricity and gas allowance and the television licence. Budget 2016 included the first increase in the weekly rates of payment since 2009. The increase in question led to the maximum personal rates of State pensions rising by €3 per week and, as a result of it, more than 676,500 pensioners and their dependents are benefiting this year.

Looking ahead, the appropriate level of the State pension is all about adequacy and affordability. I am confident that, given the right policies, our economy will continue to grow on a sustainable basis. The programme for Government commits to increasing the rate of the State pension above the rate of inflation. No commitment has been given about a telephone allowance. The appropriate level of social welfare supports will be considered by Government in a budgetary context in the coming days, with due regard to available resources.

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