Dáil Éireann Debate, Thursday - 27 September 2018
231. Deputy Eamon Ryan asked the Minister for Employment Affairs and Social Protection her plans to increase the fuel allowance for vulnerable households to remove the extra costs of increasing the carbon tax to €20 and €30 per tonne, respectively; the estimated cost of same; and if she will make a statement on the matter. [39287/18]
View answerThe fuel allowance is a payment of €22.50 per week for 27 weeks (a total of €607.50 each year) from October to April, to over 368,000 low income households, at an estimated cost of €227 million in 2018. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.
My Department also pays an electricity or gas allowance at an estimated cost of €237 million in 2018.
Additionally, under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances that have special heating needs. Exceptional needs payments may be made to help meet an essential, once-off cost which an applicant is unable to meet out of his / her own resources.
It is not possible to state the cost of the measure proposed by the Deputy, as the relevant cost of any increase in carbon tax would vary upon a number of factors, notably the energy efficiency of the homes of Fuel Allowance recipients, and the amount and type of fuel they use.
Any decision to increase the fuel allowance payment to cover the cost of energy or carbon taxes would have budgetary consequences and would have to be considered in the context of budget negotiations.
In 2016 the Government launched a comprehensive Strategy to Combat Energy Poverty following extensive public consultation. This Strategy is spearheaded by the Minister for Communications, Climate Action and Environment. It sets out the Government’s commitment to protecting vulnerable households from energy poverty through a combination of supports, investment in schemes to improve energy efficiency, and energy efficiency awareness initiatives. One of the best ways to tackle fuel poverty in the long term is to improve the energy efficiency of the dwelling through proper building and household insulation. The Warmer Homes Scheme, administered by Sustainable Energy Authority Ireland, is designed to do that. Earlier this year, this scheme was expanded to include recipients of Domiciliary Care Allowance and further expansion to include carers is under consideration. I understand the Department of Communications, Climate Action and Environment is reviewing the scheme and my officials will participate in that. It is clear that, in addition to assisting Ireland in reducing carbon emissions, it will also reduce the impact of carbon tax on householders which have benefitted from this scheme.
I hope this clarifies the matter for the Deputy.
