Written answers
Wednesday, 1 March 2017
Department of Social Protection
Household Benefits Scheme
Willie O'Dea (Limerick City, Fianna Fail)
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206. To ask the Minister for Social Protection the estimated full-year cost in 2018 of reinstating the telephone allowance, in tabular form; and if he will make a statement on the matter. [10540/17]
Leo 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 €232 million this year on these elements of the household benefits package for over 425,000 customers. The cost of the telephone allowance scheme had risen significantly each year, as the number of eligible customers grew. At the end of September 2013 there were almost 396,000 receiving the telephone allowance compared to approximately 316,000 people in 2007. This was an increase of 25%, or an average increase of nearly 4% per annum.
In 2013 the value of the telephone allowance was €114.00 per annum. The cost of restoring the allowance at 2013 levels in 2017 was estimated to be in the region of €48 million per annum. It should be noted that this costing is subject to change over the coming months in the context of emerging trends and associated revision of the estimated numbers of recipients that would be eligible, were such a measure to be introduced for 2018.
| 2017 | 2018 | |
|---|---|---|
| Telephone Allowance | €48m approximately | €50m approximately |
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.
In Budget 2017, it was announced that there will be a further increase in the rate of State pensions, by €5, which will increase the maximum personal rate of the State pension (contributory) to €238.30 later this month.
Therefore, over the past two Budgets, the maximum weekly rate for State Pensions has increased by €8 per week, which is the equivalent of over €34 per month. The value of these increases is in excess of the value of the telephone allowance previously provided.
Any decision to restore the telephone allowance would have to be considered in the context of overall budgetary negotiations. On this occasion, the Government has concentrated resources on increasing the rate of the pension, rather than on the Household Benefits package.
I hope this clarifies the matter for the Deputy.
Michael Donovan
Posted on 2 Mar 2017 10:57 pm (Report this comment)
Dear Minister Vardakar.
your above comments are weak in so understanding the need of vunrable,,O.A.P,,, in society.
it had been most unpleasant to have to read in national newspapers of a "Waterford Farmer"for whom had been druged and brutelly beaten to death all for the want of a phone.
Or a significant Alarm System or servelence system,,,,.
yet to read your above comment's were absurd and barbaric tying to make pittyful excuse that pensions have increased significantly for 2018,,,,one will be however minded of the chillling and thus barbaric "Austerity's " placed on the most vunrable in society,,,,you make refrence that pensioners are better of by €38 euro per month,,,yet you fail to add the decrease in pensions over 8yrs of the celtic bust,,,,you fail to add the demoralising "Austerity bestowed on those for whom strugle to make ends meat.
you fail to mention back door "Austerity" by increasing prescription charges,,,you fail to mention,,,back door "Austerity"by allowing "GP's to run renigade over your watch by discriminating those whom are worst of,,,by allowing "GPs to introduce charges against those whom retain a "Medical Card"for generalised services.
yet you boast of the new children's hospital in "Dublin" to cost in the region of 500 million in 2016 which was comendable and thus worth every penny,,,,only of recent the cost now would be in excesss of 1-Billion" plus wich is propostrous.
yet all was done on your watch,,,Minister.
my point life is precious it shouldn't end for the want of a phone,,,,Minister there are hundreds of thousands for whom are isolated every day & evening for whom are old frail and whom cannot leave there homes,,,please dont tell me your above comments are the final curtain drawn.