Brendan Griffin (Kerry South, Fine Gael)
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253. To ask the Minister for Social Protection if she will reinstate the electricity allowance for pensioners, in view of the significant reduction in this allowance over the past number of years; and if she will make a statement on the matter. [22224/15]

Joan Burton (Dublin West, Labour)
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The Department pays an electricity or gas allowance as part of the household benefits package to 415,000 customers, at an estimated cost of €227 million in 2015. The electricity and gas allowance is currently €35 per month. There have been no reductions to this allowance in recent budgets. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full.

In 2013, I aligned the electricity and gas allowance with the cheapest available market rate for 1,800 units of electricity. Previously the rate had been based on the price of one supplier. This provided a saving to the Department but also allowed customers to obtain savings by switching to cheaper companies without the loss of any credit that may have built up, which was not possible under the old system.

The overall concern of the Government in Budget 2015 and previous Budgets has been to protect the primary social welfare rates and maintain core weekly payments. 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.

I have no plans at this time to increase the household benefits package. Any decision to increase the package would have budgetary consequences and would have to be considered in the context of budget negotiations.