Joan Collins (Dublin South Central, Independent)
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10. To ask the Minister for Social Protection his plans to reinstate the monthly telephone allowance of €9.50; and his plans to increase the State pension by €25 over a full term of office or by €5 per year. [28786/16]

Joan Collins (Dublin South Central, Independent)
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I tabled this question because older people were particularly badly affected during the recession by the cuts to all parts of their income. They had to deal with the household charge, property tax and the universal social charge, which has now been eased to some degree. They experienced increased motor tax rates and driver licence fees. Medical card entitlements, home-care packages and the fuel allowance were reduced, while the telephone allowance was abolished. These changes were introduced during the recession and it is now time for a reversal. People were hit in their pockets and we should look at reversing all of the cuts to which I refer, starting with the restoration of the telephone allowance and the introduction of Fianna Fáil's €25 pension increase.

Leo Varadkar (Dublin West, Fine Gael)
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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.

Joan Collins (Dublin South Central, Independent)
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The Minister was correct when he spoke earlier. The right course is to cut the austerity for very vulnerable people, like lone parents and the elderly. In that time the wealthy got more wealthy and social welfare payments were attacked. Now they have been pared to the bone. People are demanding extra money in their pockets. The Minister argues that there is a recovery going on but people who are really hurt have yet to see it. The telephone allowance was very important for the elderly, particularly as during the recession so many of their children had to leave the country to work elsewhere. The Minister knows people need landlines in order to use Skype, etc., so the abolition of the telephone allowance made it very difficult for people to keep in contact with their children and grandchildren. This measure should be looked at again so we can give something back to the elderly in this country in the next budget.

Leo Varadkar (Dublin West, Fine Gael)
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I met groups that represent the elderly in the course of my work and I am sure the Deputy, as a politician, meets them in the course of hers. When I ask them what they would most like to see done for them in the budget, many bring up issues of services like home-care packages. When they talk about these kinds of more budgetary measures, we hear of three issues. They are the €5 increase in the pension, the restoration of the telephone allowance and reduction or elimination of prescription charges. I would love to achieve all those but that will not be possible in this budget. I hope we will be able to make a start on it in this budget and achieve the other measures in subsequent budgets but, obviously, we must balance the books.

Joan Collins (Dublin South Central, Independent)
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There seems to be certainty in terms of the fact that pensioners are going to get an increase. An increase of €5 per week has been mentioned. At the weekend, I read reports that this might be the case and I believe the Minister made a statement that it could be €4 or €3. After pensioners got a €3 per week increase last year, which they felt was derisory in light of the fact that they had to put up with all the austerity, will the Minister commit to a €5 increase?

Leo Varadkar (Dublin West, Fine Gael)
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I have never given a figure and I cannot because it is not yet agreed. The budget will be announced next-----

Joan Collins (Dublin South Central, Independent)
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Deputy O'Dea has not agreed it yet.

John Brady (Wicklow, Sinn Fein)
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Deputy O'Dea has the budget in front of him.

Leo Varadkar (Dublin West, Fine Gael)
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It will be announced next Tuesday by the Ministers for Finance and Public Expenditure and Reform, Deputies Donohoe and Noonan. Fine Gael committed to a €5 per week increase in the pension and, as part of our confidence and supply arrangement with Fianna Fail, provision will be made for an increase in the pension. No decision has been made on the exact amount. What I have said today is significant as I mean it. We cannot have a position in the budget whereby pensioners get an increase in the weekly payment but the disabled, carers, the blind, widows under 66, lone parents and people on invalidity pension get nothing. Taking them as a group, they are worse off than pensioners. I am trying to square that circle and make sure there is something in it for those very vulnerable people.