Dáil Éireann Debate, Wednesday - 4 December 2013
78. Deputy Niall Collins asked the Minister for Social Protection her plans to provide additional funds for senior citizens alert following the termination of the telephone allowance; and if she will make a statement on the matter. [52157/13]
View answerThe 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 the savings that this will provide means that 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.
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. My Department has no role in the funding or operation of 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 Department of Environment, Community and Local Government operates the scheme. The budget allocation for 2013 was €2.35 million. There has been no reduction in this funding in Budget 2014.
