Tommy Broughan (Dublin Bay North, Independent)
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390. To ask the Minister for Social Protection the cost to the Exchequer of reinstating the household benefits package, including the telephone allowance, to all recipients of carer's allowance and carer's benefit; and if he will make a statement on the matter. [20843/16]

Leo Varadkar (Dublin West, Fine Gael)
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The household benefits package (HHB) comprises the electricity or gas allowance, and the free television licence. The package is generally available to people living in the State, aged 66 years or over who are in receipt of a social welfare type payment or who satisfy a means test. The package is also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments. Widows and widowers aged from 60 to 65 whose late spouses had been in receipt of the household benefits package retain that entitlement. My Department will spend approximately €227 million this year on the household benefits package for over 419,000 customers.

The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. 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.

From 1 April 2012, newapplicants in receipt of Carers Allowance who are not living with the person for whom they provide care are no longer entitled to the household benefits package. For those who do reside with the person being cared for, the person being cared for is likely to already have an entitlement of their own to household benefits.

My Department does not keep statistics on the number of carers/carees who are living separately/together whose claims were from April 2012 onwards, and this along with the fact that the person being cared for is likely to have an entitlement of their own to household benefits, means that an accurate cost to the exchequer cannot be provided. It should be noted however, that, as this change only affects claims from April 2012, the total cost of reversing it would rise relatively quickly.

Any decision to restore household benefits including the telephone allowance to all recipients of carer’s allowance and carer’s benefit would have to be considered in the context of overall budgetary negotiations.

I hope this clarifies the matter for the Deputy.

Josepha Madigan (Dublin Rathdown, Fine Gael)
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391. To ask the Minister for Social Protection his plans, if any, to restore the telephone allowance to pensioners and if so, in what time period; and if he will make a statement on the matter. [20853/16]

Leo Varadkar (Dublin West, Fine Gael)
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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 approximately 35% of overall expenditure. Due to demographic changes, my 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 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 419,000 customers.

The cost of the telephone allowance scheme had risen significantly each year, as the number of eligible customers grew, arising from the increased number of pension recipients. 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.

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.