Robert Troy (Longford-Westmeath, Fianna Fail)
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301. To ask the Minister for Social Protection if he will reintroduce the phone allowance in the upcoming budget in view of the high reliance our senior citizens place on their personal alarms and given that a landline is a requirement for an alarm; and if he will make a statement on the matter. [28605/16]

Maureen O'Sullivan (Dublin Central, Independent)
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305. To ask the Minister for Social Protection his plans to reintroduce the telephone allowance; and if his attention has been drawn to the fact that many persons, particularity the elderly, were reliant on this allowance; and if he will make a statement on the matter. [28627/16]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 301 and 305 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 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 €228 million this year on these elements of the household benefits package for over 420,000 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.

The Department of the Housing, Planning, Community and Local Government has responsibility for the Seniors Alert Scheme which provides grant support for the supply of equipment such as personal alarms, smoke detectors and security lighting to enable older people without sufficient means to continue to live securely in their homes. The grant assistance is made available through community and voluntary groups registered with that Department and the equipment supplied under the scheme remains the property of the community group.

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.

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.