Written answers

Tuesday, 28 June 2016

Department of Social Protection

Household Benefits Scheme

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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307. To ask the Minister for Social Protection the full-year cost in 2016 of restoring the entitlement under the telephone allowance scheme to the rate it was at in 2010 and in 2013; and if he will make a statement on the matter. [18496/16]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The savings arising from the initial reduction and subsequent discontinuance of the telephone allowance 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 €228 million this year on these elements of the household benefits package for over 419,000 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 2010 the value of the telephone allowance was €310.80 per annum. The cost of restoring the allowance at 2010 levels is estimated to be in the region of €125m to €131m per annum. In 2013 the value of the telephone allowance was €114.00 per annum. The cost of restoring the allowance at 2013 levels is estimated to be in the region of €46m to €48m per annum.

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

I hope this clarifies the matter for the Deputy.

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