Dáil Éireann debate -
Tuesday, 4 Nov 1997

Vol. 482 No. 3

Written Answers. - Social Welfare Benefits.

Richard Bruton

Question:

278 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs when the fuel supplements, of £5 and £3 respectively, were last increased to take account of inflation; the cost of indexing them up by rises in the Consumer Price Index since the last increase; and if he will introduce such a measure in the forthcoming budget. [17849/97]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The aim of the national fuel scheme is to assist householders who are on long-term social welfare or health board payments and who are unable to provide for their own heating needs.

The fuel allowance paid was last increased in October 1985. In 1988, the national fuel scheme was amalgamated with the urban fuel scheme to form one single fuel scheme. The rate of allowance in payment has remained at £5 per week.

The smokeless fuel allowance of £3 per week, was introduced in October 1990, to assist people living in the built up areas of Dublin and Cork to help meet the additional costs arising from the ban on the sale of bituminous coal in these areas. The rate of the allowance has not been increased since its introduction.

The fuel and light component of the Consumer Price Index published by the Central Statistics Office rose by 7.1 per cent between August 1985 and August 1997. Increasing the allowance by this amount for the 1998 fuel season would cost £2.6 million.

Increases in the rate of payment of fuel allowances should not be viewed in isolation from the general increases in basic social welfare payments. Over the years, basic payments have been increased by more than the rate of inflation and the Government has agreed that the real income position of those dependent of social welfare will be protected and enhanced. In addition, the Government has also agreed that the minimum rates recommended by the Commission on Social Welfare will be implemented before the end of Partnership 2000 in the case of those payments which are not already at or above the minimum recommended rates.

Expenditure on the national fuel scheme has increased by approximately 50 per cent in the last five years from £29.5 million in 1990 to £44.35 million in 1996. A sum of £46.7 million has been set aside in the estimates for the scheme this year. In view of the financial implications, any increase in the rate of payment can only be considered in a budgetary context.