Written answers

Tuesday, 26 May 2015

Department of Social Protection

Social Welfare Rates

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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184. To ask the Minister for Social Protection the cost to the Exchequer of increasing the State pension by €5 a week. [19993/15]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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185. To ask the Minister for Social Protection the cost to the Exchequer of increasing the living alone allowance by €2.50 a week. [19994/15]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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187. To ask the Minister for Social Protection the cost to the Exchequer of fully restoring the Christmas bonus for recipients of the State pension. [19996/15]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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188. To ask the Minister for Social Protection the cost to the Exchequer of extending the period covered by the fuel allowance scheme from 26 weeks to 32 weeks. [19997/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 184, 185, 187 and 188 together.

The cost of increasing the State Pension Contributory (SPC) by €5 per week is just over €92 million in a full year. This cost includes the cost of proportionate increases for qualified adults and proportionate increases for those on reduced rates of SPC. The cost of increasing the State Pension Non Contributory by €5 per week is almost €25.5 million in a full year.

A €2.50 weekly increase in the Living Alone Allowance in 2016 would cost almost €24 million in a full year.

Payment of a Christmas Bonus equivalent to 100% of existing entitlement levels to State Pension Contributory and State Pension Non Contributory recipients is €86 million and €20 million, respectively, a total of €106 million.

The cost of extending the duration of Fuel Allowance Scheme by 6 weeks, from 26 weeks to 32 weeks, is estimated at almost €45 million in a full year.

It should be noted that these costings are subject to some change over the coming months, in the context of emerging trends and associated revision of the estimated numbers of recipients for 2016.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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186. To ask the Minister for Social Protection the cost to the Exchequer of restoring the telephone allowance. [19995/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The overall concern of Government in its Budgets has been to protect the primary social welfare rates. Expenditure on pensions at approx. €6.675 billion is the largest block of expenditure in the Department in the Estimate for 2015, representing approx. 34.4% of overall expenditure. Because of demographic changes, the Department’s spending on older people is increasing year on year. The Department had to make provision for an additional €168 million this year 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 decision to discontinue the telephone allowance provided annual savings of €48 million and meant that the Department was able to retain the other valuable elements of the household benefits package such as the electricity and gas allowance and the television licence. The Department will spend approx. €237 million this year on these elements of the household benefits package for over 415,000 customers. I am keenly aware of the impact on the Department’s clients and particularly those who are living alone. In Budget 2015, I was able to increase the rate of the living alone allowance to €9.00 per week. The fuel allowance scheme and the free travel pass were also protected for older people and people with disabilities.

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