Joan Collins (Dublin South Central, Independent)
Link to this: Individually | In context | Oireachtas source

37. To ask the Minister for Social Protection the cost of re-introducing the household package to 2007 and to 2008 levels in tabular form. [11645/16]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I understand that this question relates to the Telephone Allowance, which was previously part of the Household Benefits package. The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. This followed on from earlier savings when the allowance had been reduced. These savings meant that my 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. My 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 significantly each year, as the number of eligible customers grew. In 2007 there were some 316,000 people receiving the telephone allowance compared to almost 396,000 at the end of September 2013. This was an increase of 25%, or an average increase of nearly 4% per annum.

In August 2007 the value of the telephone allowance was increased with general price increases from €296 per annum to €310.80 per annum. There was no increase in 2008.

The cost of restoring the allowance at 2007/8 levels is estimated to be in the region of €125m to €131m per annum.

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