Dáil Éireann Debate, Tuesday - 12 July 2016
391. Deputy Josepha Madigan asked the Minister for Social Protection his plans, if any, to restore the telephone allowance to pensioners and if so, in what time period; and if he will make a statement on the matter. [20853/16]
View answerThe overall concern in recent years has been to protect the primary social welfare rates. Expenditure on pensions at approx. €6.976 billion is the largest block of expenditure in the Department in the Estimate for 2016, representing approximately 35% of overall expenditure. Due to demographic changes, my Department’s spending on older people is increasing year on year. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.
The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. These savings 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 €227 million this year on these elements of the household benefits package for over 419,000 customers.
The cost of the telephone allowance scheme had risen significantly each year, as the number of eligible customers grew, arising from the increased number of pension recipients. In 2007 there were some 316,000 people receiving the telephone allowance compared to almost 396,000 at the end of September 2013, an increase of 25%, or an average increase of nearly 4% per annum.
Any decision to restore the telephone allowance would have to be considered in the context of overall budgetary negotiations. I hope this clarifies the matter for the Deputy.
