Written answers

Tuesday, 8 July 2014

Department of Social Protection

Household Benefits Scheme

Photo of Michael McCarthyMichael McCarthy (Cork South West, Labour)
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426. To ask the Minister for Social Protection if she will undertake to review the decision to discontinue the telephone allowance; the implications this decision has had on old age pensioners and persons living alone in rural isolated areas; if she will give due consideration to an alternative system or an exemption or an allowance for persons living alone who have monitored phone alarms or panic buttons and who rely on a landline telephone connection; and if she will make a statement on the matter. [29863/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The overall concern of Government in Budget 2014 and previous Budgets has been to protect the primary social welfare rates. The biggest single block of expenditure in the Department in the Estimate for 2014 is expenditure on pensionswhichwill amount to €6.5 billion, or 33% of overall expenditure. Because of demographic change the Department’s spending on older people is increasing year on year. In 2013, the Department had to make provision for an additional €190 million for the increasing number of pensioners. Maintaining the rate of the State pension and other core payments is critical in relation to protecting people from poverty.

To allow the Department to protect core payments, we have had to look very carefully at other additional payments such as the household benefits package.

In Budget 2014, I regretfully had to make the decision to abolish the telephone allowance, which was €9.50 per month, for all recipients. I am not in a position to reverse this decision or provide an alternative payment.

The decision to discontinue the telephone allowance provided annual savings of €48 million and meant that the Department was able to retain the other elements of the household benefits package such as the electricity and gas allowance and the television licence. These are valuable supports for recipients. The Department will spend €230 million this year on these elements of the household benefits package for over 410,000 customers.

The fuel allowance scheme and the free travel pass were also protected for older people and people with disabilities. The living alone allowance was maintained at €7.70 per week.

The Department of Environment, Community and Local Government operates the seniors alert scheme which provides grant support for the supply of equipment such as personal alarms, smoke detectors and security lighting to enable older people without sufficient means to continue to live securely in their homes. The budget allocation for 2013 was €2.35 million. There has been no reduction in this funding in Budget 2014.

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