Michael McCarthy (Cork South West, Labour)
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96. To ask the Minister for Social Protection her plans to reinstate the telephone allowance; the cost of restoring same; and if she will make a statement on the matter. [27532/15]

Joan 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 resulting in the Department having to make provision for an additional €168 million this year. 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.

Any decision to restore the telephone allowance would have budgetary consequences and would have to be considered in the context of budget negotiations.