The free electricity allow-ance, telephone allowance and TV licence which state pensioners now qualify for at age 66 will not be paid until they reach 68 years of age under the extended retirement plans announced last week.

The changes begin to come into effect in 2014.

However, social welfare minister Mary Hanafin has no plans "at the moment" to change the free travel scheme which allows people aged 66 and over to travel free on the country's trains and buses.

The free electricity, phone and TV licence schemes, known as the household benefits package, are worth a considerable amount to recipients. The electricity scheme covers normal standing charge and 2,400 units of electricity each year.

The alternative natural gas allowance provides for a €52 deduction from bills every two months during summer and €111 deduction during the months of December to May. There is an alternative bottled gas allowance of €40.70 a month. Under the landline or mobile phone allowance, social welfare pays €26 a month off your bill. Social welfare also pays for your TV licence worth €160 a year.

The allowances are a considerable cost to the exchequer, with payouts of €711m this year. The most costly allowance is fuel allowance at €228m followed by the electricity allowance at €202m and the telephone allowance €121m.

Free travel, introduced by Charles Haughey back in the 1970s, will cost €77m this year.

Currently, everybody aged 70 qualifies for the household benefits package and the department spokeswoman said there are no plans to change this.

But the package is also paid to those under 70 as long as they qualify for payment of a contributory or non-contributory pension. The spokeswoman said this will "remain the case". This means that, as the age for qualification of the state pension is pushed out to 68, so too will qualification for the benefits package.

Last week, minister Hanafin along with finance minister Brian Lenihan and Taoiseach Brian Cowen unveiled a major reform of the state pension including the phased extension of the state retirement age to 66 years of age by 2014, 67 by 2021 and 68 by 2028.

The reforms also include the introduction of a compulsory private occupation scheme with workers contributing 4%, employers 2% and the state a further 2% by way of tax relief and major changes to the public service pension scheme including a final pension based on career average earnings for new entrants.