Dáil Éireann Debate, Tuesday - 22 March 2016
4. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection to upgrade the household package for the elderly and reverse the cuts to the State pension; and if she will make a statement on the matter. [5254/16]
View answerThe overall concern of the Government in its Budgets has been to protect the primary social welfare rates. Expenditure on pensions at approximately €6.974 billion is the largest block of expenditure in the Department in the Estimate for 2016, representing approx. 35.5% of overall expenditure. Due to demographic changes, the Department’s spending on older people is increasing year on year. The Department had to make provision for an additional €84 million in 2016 for the increasing number of pensioners.
The household benefits package (HHB) comprises the electricity or gas allowance, and the free television licence. The Department will spend approximately €227 million this year on the household benefits package benefitting over 419,000 customers. There are no plans to upgrade or increase payments made under the household benefits package at this time.
There have been no cuts to the State Pension in any recent budgets. In Budget 2016, I was able to announce the first increase in the basic rate of the State pension in seven years, by €3 per week. This increases the personal rate of the non-contributory pension to €222, and that of the contributory pension to €233.30. I was also pleased to announce a €2.50 increase in the rate of the Fuel Allowance, from €20 to €22.50 per week. I believe that, taken together with other changes, such as increasing the Christmas Bonus to 75% of weekly rate and increasing funding to the Free Travel Scheme, the impact of Budget 2016 has been very positive for older people.
