Dáil Éireann Debate, Thursday - 7 October 2021
5. Deputy Claire Kerrane asked the Minister for Social Protection if consideration will be given to establishing a discretionary fund to assist households with utility costs and debt given rising energy costs; and if she will make a statement on the matter. [48970/21]
View answerMy question is similar to that of Deputy Healy Rae. Will the Minister consider establishing a discretionary fund to support and assist households with mounting utility costs and bills? Some will face utility debt in the coming weeks and months, if they are not facing it already. Will the Minister consider this, given that many are locked out of the fuel allowance in the first instance?
The Government is committed to helping vulnerable households manage their energy costs through a combination of special energy related payments made by my Department and investment programmes within the responsibility of the Minister, Deputy Ryan, to improve the energy efficiency of the housing stock. My Department currently provides a range of schemes to assist low income households with energy costs. These payments include regular payments such as fuel allowance and additional discretionary payments made under the supplementary welfare allowance scheme.
The fuel allowance is a payment of €28 per week, a total of €784 each year per household from October to April. This has an estimated cost of €300 million and is paid to some 370,000 low income households. The electricity or gas allowance is available under the household benefits scheme at an estimated cost in 2021 of €195 million. Under the supplementary welfare allowance scheme, my Department makes discretionary payments to help people with the cost of heating their homes. A heating supplement may be paid to assist people who have exceptional heating costs due to ill-health, infirmity or a medical condition and are unable to meet those costs out of household income. In 2020, 1,100 people received the heating supplement and almost 1,000 people are currently receiving it. More generally, my Department also provides discretionary exceptional needs payments, where appropriate, to people who face difficulties in meeting fuel bills. These payments are not ring-fenced or budget limited as they would be if they were drawn from an earmarked fund, but rather are demand led.
In 2019, more than 5,000 exceptional needs payments, totalling €930 million, were made to assist with household bills and heating costs. In 2020 almost 4,300 exceptional needs payments were made at a total cost of €670,000. To the end of September this year more than 1,500 payments have been made at a total cost of almost €500,000.
It is fairly clear that there will be moves in regard to the fuel allowance in the budget next week. The fuel allowance is a great payment and is most welcome at the rate at which it is paid because it is extremely important for households. However, it is only extremely important for the households who actually receive it in the first place. There are issues, some of which were outlined by Deputy Healy Rae, such as the 15-month waiting time for jobseekers and the fact that those who are in receipt of illness benefit because they are out sick from work do not qualify for these payments.
In a major study this year the Society of St. Vincent de Paul outlined that nearly 20% of working people are cutting back on fuel and electricity due to costs. These are people who are at work. Those in receipt of the working family payment cannot qualify for the fuel allowance. It is very clear that we need to go beyond the fuel allowance in the budget. A specific discretionary fund for utility costs should be considered.
As I said, anybody who struggles with heating costs is entitled to make an application for a payment under the supplementary welfare allowance scheme. I encourage people to contact their local Intreo centre. Once they meet the eligibility criteria, they will be provided with additional financial support. A helpline is available at 0818 800024, and people can get support from that. It is important that we consider energy efficiency in homes. One of the best ways to tackle fuel poverty in the long term is to address the energy efficiency of dwellings through proper building and household insulation. The warmer home scheme administered by the Sustainable Energy Authority of Ireland, SEAI, is designed to do that.
I agree that we cannot have a situation whereby the fuel allowance continues to be increased and extended for ever and ever. We need to make sure people's homes are warmer, which can be done through the retrofit programme highlighted by the Minister. It makes sure that people are warm in their homes in the first instance, which is really important.
My issue with leaving this to the supplementary welfare allowance and the exceptional or urgent needs schemes is the fact that we do not know the number of people who go to community welfare offices or Intreo centres to seek payments and are refused. All we know is the number of payments that are drawn down. How many people seek the payment but do not get it are not data we have in terms of the supplementary welfare allowance. That data could be greatly improved by examining all of that.
There is discretion with community welfare officers; some will make a payment and others will not. The Society of St. Vincent de Paul has argued for a discretionary fund. I raised this matter with the Tánaiste a few weeks ago and he said it will be considered as part of the budget. Given the serious situation in terms of utility costs, we should examine this issue outside of the supplementary welfare allowance.
The important thing to say about the supplementary welfare allowance is that it is demand-led. There are no limits on it. If people qualify under the criteria set out, they will get their payments. The exceptional needs payments scheme is also, as the Deputy knows, demand-led. As a result, the level of expenditure of the schemes changes over time.
I am saying very clearly that people who have a problem paying their bills and are in difficulty should go to an Intreo office and submit an application under the supplementary welfare allowance scheme. That is what it is there for; that is its purpose. We will continue to fund it, as I said. We do not want anybody not being able to heat their houses. As we face into winter, many people are concerned about bills. I understand that. That particular fund is there to support people.
I thank Deputies for their co-operation. We are doing well on time. I hope we continue to do well on time.
