Róisín Shortall (Dublin North West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

162. To ask the Minister for Social Protection his plans to restore the telephone allowance as part of the household benefits package. [14396/17]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 approx. 4% per annum.

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 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, I announced a further increase in the rate of State pensions by €5, bringing the maximum personal rate of the State pension (contributory) to €238.30.

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 significantly in excess of the value of the telephone allowance previously provided.

Any decision to restore the household benefits in full would have to be considered in the context of overall budgetary negotiations. To date, the Government has concentrated additional resources on increasing the rate of the pension, rather than on the Household Benefits package.

I hope this clarifies the matter for the Deputy.