Written answers

Wednesday, 8 October 2014

Department of Social Protection

Household Benefits Scheme

Photo of Ruth CoppingerRuth Coppinger (Dublin West, Socialist Party)
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45. To ask the Minister for Social Protection her views on a reversal of the reductions and changes to the household benefits package that has taken place since 2011. [38479/14]

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. Expenditure on pensions at approx. €6.5 billion is the largest block of expenditure in the Department in the Estimate for 2014, representing approx. 33% of overall expenditure. Because of demographic changes 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 protecting people from poverty.

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

The adjustments made to the household benefits package in recent years have made it much easier for customers to switch to cheaper energy suppliers, without the loss of any credits they may have built up. 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 411,000 customers.

In 2010 the monthly value of the free electricity allowance was €40.70. It is currently €35.00. Restoring the allowance to 2010 levels would cost an additional €28 million for 411,000 customers.

In 2010 the monthly value of the telephone allowance was €26. The telephone allowance was discontinued in 2014. Restoring the telephone allowance to 2010 levels would cost an additional €128 million.

The Government has already announced that from 2015 the household benefits package will also include a quarterly water support payment of €25. The estimated cost of this new water support payment of €100 per annum will be in the region of €42 million in 2015.

The appropriate levels of weekly social welfare rates of payment, including any changes to household benefits, are being considered in the context of the forthcoming Budget which will be announced on Tuesday, October 14.

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