Dáil Éireann Debate, Tuesday - 14 November 2006
102 Mr. Costello asked the Minister for Social and Family Affairs if he intends to respond to the call from the Society of St. Vincent de Paul to provide additional assistance for poorer families to cope with rising energy costs, particularly in view of the disclosure that the society had paid out €1m to assist families who had their gas and electricity supplies disconnected; and if he will make a statement on the matter. [37592/06]
View answer112 Mr. Naughten asked the Minister for Social and Family Affairs the additional steps he will take to assist households with increasing energy costs; and if he will make a statement on the matter. [37099/06]
View answer122 Mr. Morgan asked the Minister for Social and Family Affairs his views regarding the concerns raised that the great majority of families on low incomes have not been helped by recent efforts to reduce fuel poverty. [37650/06]
View answer125 Mr. S. Ryan asked the Minister for Social and Family Affairs the steps he will take to ensure that those on low incomes or dependent on social welfare payments will be able to meet fuel costs this winter, in view of the increase in the cost of fuels generally and particularly in view of major increases in electricity and gas prices; and if he will make a statement on the matter. [37610/06]
View answer134 Mr. Neville asked the Minister for Social and Family Affairs if he will increase the fuel allowance to €25 per week as requested by Age Action Ireland in view of the increase in fuel costs. [37671/06]
View answer147 Mr. Durkan asked the Minister for Social and Family Affairs if he will substantially increase the free fuel allowance with a view to alleviating the hardship caused by high electricity and gas prices; and if he will make a statement on the matter. [37615/06]
View answer396 Caoimhghín Ó Caoláin asked the Minister for Social and Family Affairs the measures which he will introduce in Budget 2007 to assist low income families cope with rising energy costs. [33233/06]
View answerI propose to take Questions Nos. 102, 112, 122, 125, 134, 147 and 396 together.
My Department provides supports to people on certain payments to meet their energy costs through the household benefits package and the national fuel scheme.
Some 340,000 pensioner and other households qualify for electricity or gas allowances through the household benefits package, payable towards their heating, light and cooking costs throughout the year, at an overall cost of €119 million in 2006.
Concerns were raised about the impact of rising energy costs on these people and the Government responded immediately by announcing increases in energy fuel allowances. Currently the Electricity Allowance covers normal standing charges and up to 1,800 units of electricity and the VAT applicable to these charges. The allowance will be increased to cover the new standing charges and the number of units will also increase from 1,800 to 2,400 with effect from January 2007.
From October 1st 2006, the annual value of the Natural Gas Allowance has been increased to €516 per household. This will cover the recent 33.8% increase in Natural Gas and also increase the kilowatt hours per annum from 1,670 to approx 3,600 for each household.
The national fuel scheme assists householders on long-term social welfare or health service executive payments with meeting the cost of their heating needs during the winter season. Fuel allowances are paid for 29 weeks from end-September to mid-April. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full.
Improvements to the fuel allowance in recent years include an easing of the means test, extending the duration of payment from 26 to 29 weeks and, in Budget 2006, increasing the weekly allowance from €9.00 to €14.00 or from €12.90 to €17.90 in designated smokeless areas. It is estimated that some 274,000 people will benefit in 2006 at an estimated annual cost of €125.1m.
The Government's objective is to ensure that the recipient's total weekly income, including the fuel allowance, is sufficient to meet all of their income needs, including heating costs. Budget resources have been concentrated on providing significant real increases over and above inflation each year in all primary social welfare pension, benefit and assistance rates. This is a more costly approach than increasing fuel allowances as the increase is paid for the full year and not just for the 29 weeks of the winter heating season. This approach delivers a better outcome for pensioners and others by substantially increasing their income in real terms over the whole year, to better assist them in meeting their normal basic living costs, including heating. Since December 2001, the main social welfare rates have increased by between 47% and 56% as against an overall inflation rate increase of 17% over the period. That overall inflation rate of 17% includes the impact of increases in energy costs, which rose by 45% over the period.
Under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances that have special heating needs. An application for a heating supplement may be made by contacting the community welfare officer at the local Health Centre.
In the area of fuel poverty, my Department is cooperating with the Combat Poverty Agency, Sustainable Energy Ireland and other organisations in an action research project to improve energy efficiency. In Budget 2006, I made a grant of €2 million to Sustainable Energy Ireland to enable further activity to be undertaken in this area.
Any changes in relation to provision of basic income support, fuel allowance or the household benefits package would have significant cost implications and would have to be considered in the light of the resources available for improvements in social welfare generally.
