Michael McGrath (Cork South Central, Fianna Fail)
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115. To ask the Tánaiste and Minister for Social Protection the saving she has achieved from the abolition of the telephone allowance in 2015 to date; and if she will make a statement on the matter. [43746/15]

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 in 2015 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 was estimated to provide annual savings of €48 million, and with the year-on-year increase in the number of people qualifying for the household benefits package, this yearly saving will increase. These savings 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. €227 million this year on these elements of the household benefits package for over 416,000 customers.

I am keenly aware of the impact of Budget decisions on the Department’s clients, and I have sought to ensure that the money available is targeted in the most effective way. In Budget 2016, I was able to announce the first increase in the basic rate of the State pension in seven years, by €3 per week. This will increase the personal rate of the non-contributory pension to €222, and that of the contributory pension to €233.30. I was also pleased to announce a €2.50 increase in the rate of the Fuel Allowance, from €20 to €22.50 per week. I believe that, taken together with other changes, such as increasing the Christmas Bonus to 75% of weekly rate, the impact of this Budget will be very positive for older people.

Michael McGrath (Cork South Central, Fianna Fail)
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116. To ask the Tánaiste and Minister for Social Protection the saving she has achieved from the cuts to free electricity and gas units during the lifetime of the Government, by year to date; and if she will make a statement on the matter. [43747/15]

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 416,000 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.

Changes were made to the household benefits package and fuel scheme during 2011. These changes were provided for in Budget 2011, which was introduced by the previous Government, but details were not specified at the time. The number of free units provided under the electricity and gas allowance was reduced to the level at the start of 2007 (from 2,400 to 1,800). This change was effective from September 2011. Estimated savings for this measure at that time were €29.8 million per year. As this benefit is now delivered by means of a cash amount, rather than the purchase of a set number of units, my Department is no longer in a position to state the actual saving this particular change will deliver in 2015.

Effective from April 2012, new applicants for carer’s allowance, who are not living with the person for whom they are providing care, are not entitled to household benefits. It is estimated that this affects approximately 1,000 people in a full year, yielding an estimated saving of approximately €420,000 per annum.

In 2013, the electricity and gas allowance was aligned 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 wasn’t possible under the old system. Estimated savings from this measure was €20 million in 2013 and €22.6 million in each subsequent full year.