Scrapping of phone allowance defended

Social Protection Minister Joan Burton has defended the Government’s controversial decision to scrap the telephone allowance amid claims it would adversely affect vulnerable older people.

The allowance is worth €114 per annum to almost 400,000 recipients, mostly pensioners.

A total of €44m will be saved through the scrapping of the allowance which comes into effect from Jan 1, 2014.

It is the single biggest saving achieved from an overall reduction of €290m in expenditure on social welfare payments next year.

However, Fianna Fáil spokesman Willie O’Dea described the axing of the allowance as “mean and dangerous”.

It is paid as part of the household benefits package which also includes the fuel allowance and free TV licence.

It is available to all people aged over 70 years as well as several categories of social welfare recipients under 70.

The axing of the phone allowance comes on foot of a major reduction in funding for the scheme announced in last year’s budget which saw its value fall from €22.58 to €9.50 per month.

However, Ms Burton stressed the Government would still spend €230m on the household benefits package next year.

Although the Department of Social Protection will achieve further savings of €5m — through a reduced payment to RTÉ of €54.2m in 2014 in relation to the free TV licence —she said eligible recipients would continue to receive it free.

The minister pointed out there were no other changes apart from the phone allowance to other elements of the package including the electricity/gas allowance.

She explained her decision to scrap the phone allowance was based on the fact that many phone providers now offered customers a range of bundled packages with reduced phone charges.

However, Ms Burton said funding would remain available for elderly people needing personal alarm devices through local, community-based schemes.

Age Action expressed concern that the measure coupled with other cuts announced in the Budget would hit pensioners the hardest.

Age Action spokesman Eamon Timmins said the abolition of the phone allowance would adversely affect elderly people who were most dependent on a phone to remain in contact with neighbours and friends, particularly those who were housebound, living alone or living in remote areas.

“This payment was recognition that older people’s needs were different from other sections of society and that the phone played a greater role in keeping older people well,” he said.