In reply to Parliamentary Question No. 403 of 5 February 2013, I outlined the changes made to the household benefits package in budget 2013. In 2013, my Department will spend an estimated €284 million on the household benefits scheme, providing some 410,000 customers with a package worth almost €700 per year. Separate to the household benefits package, some 410,000 customers will receive the fuel allowance of €20 per week paid for 26 weeks, at a cost of €211 million. The structure of the electricity and gas allowance was changed from a unit based allowance to a cash credit which is currently €35 per month. This rate is aligned to the best average market rate currently available. The changed structure of the allowance is designed to encourage customers to achieve better savings through greater mobility between energy suppliers who can best meet their individual energy needs.
There has been no policy U-turn in relation to unused gas/electricity credits. In fact, the new arrangement represents a significant improvement in the options available for customers. Customers who do not use their full entitlement each month will be able to carry forward that unused cash credit and draw it down as they wish; this includes customers who wish to switch to a different supplier. Prior to these changes, customers with Electric Ireland could not carry forward their unused credits if they switched to a new supplier; this acted as an impediment to customers achieving the best value for their particular energy needs. Under the new arrangement, customers with Electric Ireland who build up cash credits will have those credits refunded if they switch to a different company. As regards the old non-cash units, a number of customers have unused units which they have carried over from 2012. These customers may use these unused units up to the end of September, 2013. My Department has contacted customers in this regard.
My Department pays a fuel allowance of €20 per week to qualified households who are in receipt of long-term social welfare or HSE payments and who are unable to provide for their own heating needs. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full. The fuel allowance season runs for 26 weeks from October to April each year and not 20. The fuel allowance season was due to end on 5 April 2013 but because of the very cold weather at the start of April, the allowance was paid for an extra week at this time of year. It should be noted that Ireland’s older population has the lowest rate of consistent poverty - 1.9% compared with the whole population rate of 6.9% - and, as a group are least likely to be at risk of poverty. This points to the adequacy and importance of the State pension and other supports provided by my Department.
Question No. 594 withdrawn.
