Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Social Protection if she will outline the changes to the telephone allowance arising from Budget 2013; the level of expenditure incurred under this scheme in 2012; the projected expenditure for 2013; and if she will make a statement on the matter. [4216/13]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

The household benefits package comprises the electricity/gas allowance, the telephone allowance and the free television licence. The package is primarily available to older people, people with disabilities and carers. The allocation for the telephone allowance scheme has been reduced in 2013 as a cost saving measure. The estimated expenditure outturn on the telephone allowance in 2012 is €113 million compared with projected expenditure for 2013 of €48 million. As a result the monthly allowance will fall from €22.60 to €9.50, a reduction of 58%.

The number in receipt of telephone allowance has increased significantly in recent years, in line with increases in customers receiving qualifying payments, as well as the increases in those aged over 70. In 2005 there were 311,000 customers in receipt of telephone allowance; in 2012 there were 397,000, an increase of 28% over seven years. Over the last three years the numbers have increased on average by 9,000 per year. At the same time the market has been transformed with deregulation, mobile services and bundled services including television, broadband and telephone. It makes the former notion of an allowance covering handset rental, standing charges and a number of calls somewhat outdated. There is a wide variety of deals available. For example, it is possible to get a standard pay-as-you-go brand name mobile telephone for as little as €19.99.

I am aware that any reduction in social welfare payments or benefits is difficult. However, to allow the Government to protect the core payments which people receive such as pensions, disability payments and carer’s allowance, we had to look very carefully at other additional payments such as the household benefits package.