Wednesday, 8 May 2019

Questions (1434)

Bobby Aylward

Question:

1434. Deputy Bobby Aylward asked the Minister for Employment Affairs and Social Protection the estimated annual cost of increasing the fuel allowance payment by €1.50 per week; and if she will make a statement on the matter. [19160/19]

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Written answers (Question to Employment)

The fuel allowance is a payment of €22.50 per week for 28 weeks (a total of €630 each year) from October to April, to over 375,000 low income households, at an estimated cost of €240 million in 2019.  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 under the house hold benefits scheme at an estimated cost of €187 million in 2019. 

The estimated full year additional cost of the measure proposed by the Deputy would be €15.77 million, assuming no change in the number of recipient households.

Any decision to increase the fuel allowance payment 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. 

I hope this clarifies the matter for the Deputy.