Dáil Éireann Debate, Thursday - 25 September 2014
39. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection to set out the cost of restoring, by 50%, the cut in funding in the electricity and gas element of the household benefits package that has been introduced since the Government came to office; the cost of fully restoring the funding cuts outlined; and if she will make a statement on the matter. [36270/14]
View answer40. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection to set out the cost of restoring, by 50%, the cut in funding in the telephone allowance element of the household benefits package that have been introduced since the Government came to office; the cost of fully restoring the funding cuts outlined; and if she will make a statement on the matter. [36271/14]
View answerI propose to take Questions Nos. 39 and 40 together.
The overall concern of Government in Budget 2014 and previous Budgets has been to protect the primary social welfare rates. Expenditure on pensions at approx. €6.5 billion is the largest block of expenditure in the Department in the Estimate for 2014, representing approx. 33% of overall expenditure. Because of demographic changes the Department's spending on older people is increasing year on year. In 2013, the Department had to make provision for an additional €190 million for the increasing number of pensioners. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.
The adjustments made to the household benefits package in recent years have made it much easier for customers to switch to cheaper energy suppliers, without the loss of any credits they may have built up. The decision to discontinue the telephone allowance provided annual savings of €48 million and meant that the Department was able to retain the other elements of the household benefits package such as the electricity and gas allowance and the television licence. These are valuable supports for recipients. The Department will spend €230 million this year on these elements of the household benefits package for over 411,000 customers.
The fuel allowance scheme and the free travel pass were also protected for older people and people with disabilities. The living alone allowance was maintained at €7.70 per week.
In 2010 the monthly value of the free electricity allowance was €40.70. It is currently €35.00. Restoring the allowance to 2010 levels would cost an additional €28 million for 411,000 customers. Restoring the allowance by 50% would cost an additional €14 million.
In 2010 the monthly value of the telephone allowance was €26. The telephone allowance was discontinued in 2014. Restoring the telephone allowance to 2010 levels would cost an additional €128 million. Restoring the allowance by 50% would cost an additional €64 million.
