Cuts to Household Benefits and smokeless fuel allwce

[chasm]

So the Govt has announced they are cutting the household benefits package to 2007 levels and that the smokeless fuel allowance is going to be abolished.

http://www.welfare.ie/EN/Press/PressReleases/2011/Pages/pr120711.aspx

One part that amazes me is the section on the telephone allowance:

"The Telephone Allowance will be set at €22.22 per month (from €25.91 per month) from September 2011. However, the Department of Social Protection has negotiated with Eircom, the main supplier, to ensure that all Eircom customers will get a value of €26.86 towards their telephone bill."

So Eircom customers will get €26.86 credited to their phone bill yet customers using other providers will only get €22.22, how are they allowed to do this? Would that not be seen as encouraging people to use eircom instead of another provider?

 

[theresa1]

Telephone Allowance

1. I am receiving the Telephone Allowance on my telephone bill every month, how will this affect me?
The monthly rate of the Telephone Allowance will be adjusted from €25.91 to €22.22 effective from September 2011. This change will be automatically applied to your bill.
2. I am in receipt of the “Social Benefits Package” with Eircom, how will this change affect me?
The Department has negotiated a deal with Eircom which will provide customers in receipt of the ‘Social Benefits Package’ with line rental (€25.36) and a monthly call allowance of €1.50 (reducing from €2.47). The handset rental will no longer be covered under the allowance. Handset rental will be available to you at a reduced rate. If you do not want to continue to avail of handset rental, you must contact Eircom directly and you will retain your existing handset at no additional cost.
3. I am receiving €26 cash payment per month, how will this affect me?
The rate of the cash payment will be adjusted from €26 to €22.30 a month from September 2011. - welfare.ie

 

[theresa1]

I'm only guessing but say the other phone companies could have offered a deal but they didnt. Of course it's encouraging you to go with eircom but it's not breaking any rules? Maybe eircom will be nationalised shortly - this line is a joke -well I think it is.