Willie O'Dea (Limerick City, Fianna Fail)
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442. To ask the Minister for Social Protection the projected increase due to changing demographics in the number of persons availing of the free travel scheme over the next five years; the cost of maintaining the scheme at current levels, taking account of the projected increase in users; and if he will make a statement on the matter. [22358/16]

Leo Varadkar (Dublin West, Fine Gael)
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There are currently approximately 853,000 people in Ireland in receipt of free travel at an annual cost of €80 million per annum.

The free travel scheme is available to all people aged over 66 living permanently in the State. Applicants who are under age 66, including those with learning disabilities, must be in receipt of a qualifying payment in order to qualify for the scheme. The qualifying payments for those aged under 66 are invalidity pension, blind pension, disability allowance, carer’s allowance or an equivalent social security payment from a country covered by EC Regulations or one with which Ireland has a Bilateral Social Security Agreement. Free travel is provided for people in receipt of carer’s allowance to facilitate their caring role and support their social inclusion.

Allocation of funding for the free travel scheme is dependent on a number of factors, including the number of people in receipt of qualifying benefits, the number of participating companies and routes, and fare levels, not all of which can be predicted 5 years in advance.

While changing demographics are expected to result in increased numbers of people qualifying for the travel pass, notably among pensioners, the payments to operators who accept the free travel pass are calculated on the basis of fares foregone (at a reduced rate to take account of travel generated by the free travel scheme), and not simply by the numbers who are entitled to a free travel pass. Other factors that can affect the overall cost include the number of operators who participate in the scheme and potential future fare increases by those operators.

Consequently, the funding for the subsequent 12 months is agreed in the context of the Budget process each year.

I hope this clarifies the matter for the Deputy.