Maureen O'Sullivan (Dublin Central, Independent)
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198. To ask the Tánaiste and Minister for Social Protection if she will consider reintroducing the telephone allowance, as its abolition is putting extra costs on many old age pensioners who rely solely on their landline and who are not familiar with mobile telephones and online bundles offered via the Internet; if she will acknowledge that there are people, particularly of older age, who have no desire to familiarise themselves with online technology and that this cut has had a direct negative impact on them; and if she will make a statement on the matter. [33187/15]

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. 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.

While the decision to discontinue the telephone allowance was a difficult one it 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.

Any decision to reinstate the telephone allowance would have budgetary consequences and would have to be considered in the context of budget negotiations. The Government will finalise its consideration of the Budget in the coming weeks and the outcome of this process will be announced on Budget Day.