Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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93. To ask the Minister for Social Protection if her Department has conducted research or engaged with others to establish the impact of the loss of the telephone allowance component of the household benefits package on older persons and those with disabilities; and if she will make a statement on the matter. [30866/14]

Joan Burton (Dublin West, Labour)
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The Department has published a social impact assessment of the main welfare and tax measures in Budget 2014, including the discontinuing of the telephone allowance. The analysis shows that the combined welfare and tax measures for 2014 result in a loss of 0.8 per cent in average household income. The largest percentage loss is for the top and bottom quintiles at 1.1 per cent, with lower losses for middle income groups. The family type most affected is unemployed single people. There was no significant change in the at-risk-of-poverty rate, as social transfers continue to perform strongly, substantially reducing the at-risk-of-poverty rate during the economic recession.

As part of the Department’s regular meetings of the community and voluntary pillar, the pre-budget forum and submissions, groups have had an opportunity to present their views on the impact of the discontinuing of the telephone allowance, which was €9.50 per month. 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.

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.