Maria Byrne (Fine Gael)
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Thank you for accepting my Commencement matter, a Chathaoirligh. The Minister of State, Deputy Joe O'Brien, is very welcome. I raise the issue of the costs faced by the over-70s and ask the Government to consider increasing the help provided to them. In 2018, a €2.50 weekly increase was introduced to assist those aged over 70 with their telephone line costs. This works out at €130 a year, but the cost of renting a landline is €504 a year. That is a significant amount for somebody over 70 who is on a very low income. Many such people are living alone and the telephone is their only means of communication with their family and friends. In these Covid times many people have been spending a lot of time at home. What highlighted the issue for me was when I received a letter from an 89-year-old man to say that because he is on the basic pension he does not have a television. While his TV licence would be free the cost of the different stations is prohibitive. He also found it was too expensive for him to have a telephone. His letter highlighted for me the difficulties of people who are on a low income. During these Covid times, when people have gone through so much, they have relied more on the television for company and on the telephone to make calls. It is time that we looked at the allowances that are paid to the over-70s to see if there is any way we can give them a helping hand. People are living longer but the situation is very difficult on people aged over 70.

While much has been done to increase the pension in recent years, for some time there were no increases or even partial cuts. It is very welcome that the pension was increased by €5 in the last budget, but there are other issues that we need to examine. People can only get the telephone allowance if they are in receipt of certain social welfare payments such as the living alone allowance and the fuel allowance. An older person who is living with a family member likes to pay his or her own bills and to have his or her independence. I would appreciate if the Government could examine the situation. I know it is early, in that the budget will take place in October, but I am sure many Departments are looking at their budgets, so for that reason it is an opportune time to highlight the issue.

Joe O'Brien (Dublin Fingal, Green Party)
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I thank Senator Maria Byrne for raising this matter. The telephone support allowance, TSA, which was announced in budget 2018 is a weekly payment of €2.50 equating to €130 per year. Approximately 136,000 customers are currently in receipt of the TSA payment. The estimated full-year cost of the scheme is more than €18 million. The primary objective of the TSA is to support the most vulnerable people at risk of isolation, including the elderly and those with disabilities, with access to personal alarms or phones for security.Therefore, the criteria for the allowance were framed in order to direct the limited resources available to the Department in as targeted a manner as possible. People who live alone are considered among those most at risk of social isolation. This payment, along with the living alone allowance, is also in part a recognition of the greater challenges facing those living alone in avoiding poverty. The deprivation rate of couples over 65 is less than half that recorded among those over that age who live alone.

To receive the TSA, a person must be in receipt of a qualifying payment, the living alone allowance and the means-tested fuel allowance. Qualifying core payments for the TSA include payments such as the contributory or non-contributory State pension and the widow's, widower's or surviving civil partner's contributory pension. Many of the people who are in receipt of qualifying payments for the TSA would already be over the age of 70.

The living alone allowance is paid to pensioners aged 66 and over who live alone and are in receipt of the State pension or certain other social welfare payments. It is also paid to people under 66 who live alone and are in receipt of a qualifying social welfare payment. The estimated number of recipients of the living alone allowance in 2021 is over 220,000 and the estimated full year cost of the scheme in 2021 is over €217 million.

I am very aware that the living alone allowance is a very important support for vulnerable customers who live alone. CSO surveys on income and living conditions consistently show that those aged 65 and over who live alone are more likely to be at risk of poverty than people living in multiperson households. Recent ESRI research from July 2020 supports these findings by highlighting the crucial importance of the living alone allowance in minimising the risk of poverty for this group of people. That is why in budget 2021 we increased the living alone allowance by €5, bringing the payment up from €14 to €19 per week, at a cost of over €57 million. Together with the increase provided in budget 2020, the living alone allowance has almost doubled in the last two years.

All schemes operated by the Department are constantly reviewed and any decision to change their qualifying criteria would have to be considered in the context of overall budgetary negotiations.

Maria Byrne (Fine Gael)
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I thank the Minister of State for his response. I am trying to highlight the fact that the cost of everything is increasing and we need to review the schemes in that context. People are finding it difficult to pay their bills, especially those on lower incomes. Many pensioners are solely reliant on the State pension of approximately €258 per week. I ask that the Department would review the allowances in the context of costs going up. Many people are cutting costs to try to cover other things and this needs to be looked at in that context. I acknowledge that the TSA provides €130 towards the cost of a telephone but it is €504 for a landline. I also acknowledge that the living alone allowance was increased to €19 per week, which is great, but there are still people in very difficult circumstances.

Joe O'Brien (Dublin Fingal, Green Party)
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I thank Senator Byrne. I accept that the situation is as she describes but would reiterate that the primary objective of the TSA is to support vulnerable people most at risk of social isolation, including the elderly and those with disabilities, by providing them with access to personal alarms or phones for security. Therefore, the criteria for the allowance are framed in order to direct the limited resources available to the Department in as targeted a manner as possible. As can be seen from recent budget measures supported by evidence-based research, the Government is targeting increases in relevant payments to support the most vulnerable customers. The increase provided for in budget 2021 means that in 2021, living alone allowance recipients now receive €19 per week in addition to their primary social welfare payment, or a total of €988 over the course of this year. This budget measure represents a 36% increase in the value of this payment.

This increase is particularly important in light of the Covid-19 pandemic. Since March 2020 the pandemic has changed our lives profoundly. These are difficult times for many people, especially the vulnerable and the elderly, particularly those who are living alone. Therefore, the increase in the living alone allowance payment was an appropriate policy response. Together with the increase provided for in budget 2020, the living alone allowance has almost doubled in the last two years. Like all other schemes operated by the Department, this will be kept under review to ensure it is achieving its objective.