Dáil Éireann Debate, Tuesday - 5 November 2013
421. Deputy Seán Crowe asked the Minister for Social Protection the number of persons in receipt of the telephone allowance, as part of their household benefits package; and the number who will be able to continue to use their personal alarms that require a telephone line when this package is withdrawn. [45686/13]
View answer499. Deputy Willie O'Dea asked the Minister for Social Protection the process that must be followed by her Department to give effect to changes in the household benefits package announced in Budget 2014; and if she will make a statement on the matter. [46068/13]
View answer504. Deputy Lucinda Creighton asked the Minister for Social Protection her views on the impact of the proposed changes in the social welfare and pensions Bill (details supplied); and if she will make a statement on the matter. [46162/13]
View answer519. Deputy Billy Kelleher asked the Minister for Social Protection her plans to retain the household benefits package in future budgets; and if she will make a statement on the matter. [46325/13]
View answerI propose to take Questions Nos. 421, 499, 504 and 519 together.
The overall concern of the Government in this and previous budgets has been to protect the primary weekly social welfare rates. Maintaining the rate of the State pension and other core payments is critical in relation to protecting people from poverty. To allow us to protect these core payments, we have had to look very carefully at other additional payments. The cost of the telephone allowance scheme had risen each year with the number of eligible customers also increasing significantly. In 2007 there were some 316,000 people receiving the Telephone Allowance compared to almost 396,000 at the end of September this year, an increase of 25%. Each year almost 10,000 extra customers become eligible for the allowance because of the increased number of pension recipients.
I am keenly aware of the impact on the Department’s customers and particularly those who are living alone. While we are ending the telephone allowance we have been able to keep at the same rates the other elements of the household benefits package, including the free electricity/gas allowance and the free television licence. We have also retained the fuel allowance, free travel and the living alone increase. I am not in a position at this time to make any commitments in relation to future budgets.
Of course it is important to be aware that Ireland’s pensioners as a group have the lowest consistent poverty rate and, as a group compared to the rest of the population, are least likely to be at risk of poverty - pointing to the adequacy and importance of the State pension. Between 2004 and 2011, consistent poverty for older people (those over 65) fell from 3.3% to 1.9%. The ‘at risk of poverty’ rate for people in that age group also reduced from 27.1% to 9.7% over the same period.
The monthly allowances under the household benefits package are a contribution towards the cost of services; they are not intended to meet those costs in full. The ending of the telephone allowance of €9.50 per month (or about €2.20 per week) will not result in the automatic removal of any landline service linked to a personal alarm. Indeed, since the Budget announcement, I am aware that one telephone company has advertised that they will cover the value of the allowance. I would hope that other telephone companies will consider this.
The telephone allowance was introduced at a time when telephones were expensive and uncommon and a landline service was the only option available to the customer. The market has changed enormously since the introduction of the allowance, with several companies providing a range of services and rates with bundled services including television, telephone and broadband and pay-as-you-go mobiles. There are also personal security services that use mobile technology rather than land lines.
The Department of Environment, Community and Local Government operates 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 budget allocation for 2013 was €2.35 million. There has been no reduction in this funding in Budget 2014.
As regards the process to give effect to the changes, the household benefits package is an administrative scheme under the authority of the Minister for Social Protection. It is administered by officials in my Department on the basis of publicly available operational guidelines. Following the Government decision as announced in the Budget, my Department amended the operational guidelines for the household benefit package. All information regarding the scheme has been updated on the Department’s website and the Citizens Information website and a frequently asked questions section has been provided. The Department’s information booklets have also been updated. The telecommunications companies were advised of the changes and community and social partners were briefed on the evening of the Budget. My officials are currently working on the information technology changes which will be required to effect the changes.
