Written answers

Tuesday, 18 November 2014

Department of Social Protection

Social Welfare Benefits

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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147. To ask the Minister for Social Protection her plans to reinstate all the benefits that have been taken off senior citizens since 2011; and if she will make a statement on the matter. [44244/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I announced on budget day a number of welfare initiatives which will benefit pensioners, carers and people with disabilities who are in receipt of a welfare payment. These initiatives included the re-introduction of a Christmas bonus and an increase in the living alone allowance.

The Christmas bonus was abolished by the previous Government in 2009. This year a bonus of 25% will be paid in early December to all long-term welfare recipients including all pensioners and carers. This will cost over €63 million and is in recognition of the position of vulnerable households.

There will be an increase in the living alone allowance of €1.30 per week from January, bringing the rate up from €7.70 to €9 for pensioners and people with disabilities. The living alone allowance is a payment made to pensioners and people with disabilities who live alone and was last increased in 1996. In Budget 2015 the household benefits scheme, the fuel allowance scheme and the free travel pass were also maintained.

The overall concern of the Government in Budget 2015 and previous Budgets has been to protect the primary social welfare rates. Expenditure on pensions is the largest block of expenditure in the Department, representing about a third of overall expenditure. Because of demographic changes the Department’s spending on older people is increasing year on year. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty. The savings generated by reductions in secondary benefits were essential to maintain core weekly payments.

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 approximately 415,000 customers.

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