Written answers

Tuesday, 17 May 2016

Department of Social Protection

Social Welfare Benefits Expenditure

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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545. To ask the Minister for Social Protection the cost of increasing the State pension by €5 per week; and if he will make a statement on the matter. [10337/16]

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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546. To ask the Minister for Social Protection the cost of increasing the living alone allowance by €2.50 per week; and if he will make a statement on the matter. [10338/16]

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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549. To ask the Minister for Social Protection the cost of fully restoring the Christmas bonus to recipients of the State pension; and if he will make a statement on the matter. [10341/16]

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail)
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552. To ask the Minister for Social Protection the estimated cost of increasing the carer's support grant from €1,700 per year to €2,000 per year; and if he will make a statement on the matter. [10434/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 545, 546, 549 and 552 together.

The cost of increasing the weekly rates of payment for all pensioners aged 66 and over (State Pension Contributory, State Pension Non-Contributory, Widow’s, Widower’s and Surviving Civil Partner’s Contributory Pensioners aged 66 and over, Carer’s Allowance recipients aged 66 and over, Death Benefit Pension recipients aged 66 and over, Incapacity Supplement recipients aged 66 and over, and Deserted Wife’s Benefit recipients aged 66 and over) is estimated at €154.4 million in a full year. The cost of increasing the State Pension Contributory by €5 per week, from €233.30 to €238.30 per week, is estimated at €105 million. The cost of increasing the State Pension Non-Contributory by €5, from €222 to €227 per week, is estimated at €25.1 million. These costs include proportionate increases for qualified adults, and those on reduced rates of insurance-based payments, where applicable.

The cost of increasing the Living Alone Allowance by €2.50 per week, from €9 to €11.50 per week, is estimated at €25.2 million in a full year.

The cost of paying a 100% Christmas Bonus to recipients of the State Pension (Contributory) and State Pension (Non-Contributory) in 2016 is estimated at €109 million. The cost of paying a 100% Christmas Bonus to all pensioners aged 66 and over is estimated at €130 million.

The cost of increasing the Carer’s Support Grant by €300, from €1,700 to €2,000 per annum, in 2016 is estimated at €25.7 million.

It should be noted that these costings are subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients for 2017.

The Programme for Government contains the commitment to “increase the State Pension and the Living Alone Allowance above the rate of inflation”. Improvements to welfare weekly rates of payment will be considered in the context of the next Budget.

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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547. To ask the Minister for Social Protection the cost of restoring the telephone allowance to €9.50 per month; and if he will make a statement on the matter. [10339/16]

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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548. To ask the Minister for Social Protection the cost of restoring the telephone allowance to its original value of €22.50 per month; and if he will make a statement on the matter. [10340/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 547 and 548 together.

The overall concern in recent years has been to protect the primary social welfare rates. Expenditure on pensions at approx. €6.976 billion is the largest block of expenditure in the Department in the Estimate for 2016, representing approx. 35% 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.

The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. 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 approximately €227 million this year on these elements of the household benefits package for over 418,000 customers.

The cost of the telephone allowance scheme had risen each year with the number of eligible customers also increasing significantly. In 2007 there were some 316,000 people receiving the telephone allowance compared to almost 396,000 at the end of September 2013, an increase of 25%, or an average increase of nearly 4% per annum. Each year almost 10,000 extra customers became eligible for the allowance because of the increased number of pension recipients.

In relation to estimating the cost of restoring the allowance for 2017, and approximating the average number of claimants in the region of 421,000, it is estimated that the cost would be in the region of €48m for €9.50 per month, and €114m if €22.50 per month.

The Government is keenly aware of the impact of Budget decisions on the Department’s clients, and strives to ensure that the money available is targeted in the most effective way. In Budget 2016, the first increase in the basic rate of the State pension in seven years was given. This has increased the personal rate of the non-contributory pension to €222, and that of the contributory pension to €233.30. There was also 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 the last Budget has been very positive for older people.

I hope this clarifies the matter for the Deputy.

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