I announced on budget day a number of welfare initiatives of benefit to pensioners, carers and people with disabilities who are in receipt of a welfare payment. These initiatives included the re-introduction of a Christmas bonus which was abolished by the previous Government in 2009 and an increase in the living alone allowance, which has not increased since 1996.
A bonus of 25% was paid in early December to all long-term welfare recipients, including all pensioners and carers, at a cost of over €63 million. From January the weekly living alone allowance has been raised from €7.70 to €9 for pensioners and people with disabilities.
In Budget 2015 the household benefits scheme, the fuel allowance scheme and the free travel pass were also maintained.
The overall concern of the Government in Budget 2015 and previous Budgets has been to protect the primary social welfare rates. Expenditure on pensions is the largest block of expenditure in the Department, representing about a third of overall expenditure. Because of demographic changes the Department’s spending on older people is increasing year on year. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty. The savings generated by reductions in secondary benefits were essential to maintain core weekly payments.
The adjustments made to the household benefits package in recent years have made it much easier for customers to switch to cheaper energy suppliers, without the loss of any credits they may have built up. This is important as there are significant discounts available for those who switch suppliers, with larger reductions on offer only for new customers. In all, the Department spent approximately €230 million in 2014 on the household benefits package for approximately 415,000 customers.
Approximately 415,000 customers receive the fuel allowance of €20 per week for 26 weeks from October to April, at an estimated cost of €208 million in 2014. Any decision to increase the fuel allowance would have budgetary consequences and would have to be considered in the context of budget negotiations.
It is recognised in the Government’s Energy Affordability Strategy that the best way to tackle fuel poverty in the long term is to improve the energy efficiency of the dwelling. The Better Energy Warmer Homes scheme which is administered by the Sustainable Energy Authority of Ireland delivers a range of energy efficiency measures to low income households vulnerable to energy poverty that are free of charge to the customer.
