Dáil Éireann Debate, Thursday - 3 February 2022
10. Deputy Fergus O'Dowd asked the Minister for Social Protection if there are plans to review the household benefits package due to the increases in cost of living; and if she will make a statement on the matter. [5021/22]
View answerEvery family is worried about the cost-of-living increase. They are worried and fearful about their next energy bill, in particular. Will the Minister review the household benefit packages due to this significant increase in the cost of living, and will she make a statement on the matter?
I thank the Deputy for raising this issue. The Government is committed to supporting households to control and meet energy costs through a combination of monetary supports as well as investment to improve the energy efficiency of the housing stock. The household benefits package comprises the electricity or gas allowance and the free television licence, and is just one of a range of supports my Department provides to assist people with their fuel costs. My Department will spend approximately €273 million this year on household benefits, supporting more than 484,000 households. As part of the overall welfare budget package of €600 million in increases that I secured for 2022, I was pleased to be able to increase the fuel allowance payment by €5 per week, effective from budget night. The rate now stands at €33 per week and supports more than 375,000 customers, at an overall cost estimate for 2022 of €366 million. Other payments, such as increases for qualified children, the living-alone allowance and the working family payment, are also shown to be effective in supporting those households who will be most challenged by increases in energy costs. Again, I was pleased to be able to bring forward increases in these payments, valued at €98 million in a full year, as part of budget 2022. Any decision to enhance the household benefits package would have budgetary consequences and would have to be considered in the context of overall budget negotiations.
In addition to the regular weekly and monthly payments, the Department can also support people through the use of discretionary payments, including the exceptional needs payment and a special heating supplement under the supplementary welfare allowance scheme. The recently announced electricity costs emergency benefit payment is a key measure being developed by the Government and led by my colleague, the Minister for the Environment, Climate and Communications, to help mitigate the effects of the recent rise in electricity prices on all domestic customers.
I thank the Minister. I congratulate her on the excellent work she is doing. As she stated, uniquely, she has made significant changes for the first time in 17 years. The problem we have is recognised by the Government. At the time of the budget, inflation was predicted at 2.2%. It is now in excess of 5%. Regrettably, and through no fault of the Government, many families are choosing between buying food or fuel. That is the reality of the situation. I appreciate the Minister stated it has to be a budgetary matter. If it means a supplementary budget is needed to increase the fuel allowance – I am referring specifically to the household benefit package - to either increase the benefits or reduce the qualification restrictions for it, all Members would support that because it is the right and proper thing to do in a modern democracy faced with the economic challenges we are facing. In light of the high buoyancy in our finances at the moment, let us spend that on the ordinary people who need it now.
I thank the Deputy. He will appreciate that budget 2022 delivered the biggest social welfare budget package in 14 years.
I accept that totally.
I provided the across-the-board increases and, in addition, targeted measures to support the most vulnerable, based on recommendations by the Vincentian Partnership for Social Justice. The budget increased the fuel allowance, the living-alone allowance and the qualified child payment. Of course, we are considering this issue as a Government. Despite what some people say, we are not removed from reality. We see what is happening on the ground and we know the cost of living has gone up. I know people are struggling to meet some of these costs. I have asked my officials to look at what we can do. The Taoiseach and the Tánaiste are also committed to taking action on this issue. We, as a Government, are committed to looking at what can be done. It does require a whole-of-government approach. Inflation is not just impacting on people on social welfare; it is also impacting on people who are working. This is across the board, so it has to be a whole-of-government approach.
I very much welcome the Minister's comments. She has the support of every Member, those of all parties and none, to do what needs to be done. I accept and acknowledge that is her absolute intention. The key point is that older people, as well as those who are sick or disabled, need more heat than younger people do. That is why these schemes are there. If she can increase them, she should do so. I have no issue with a supplementary budget being brought forward if that is needed. I do not know what the alternatives are, other than the Minister doubling the allowances for a certain number of weeks and so on. If that requires a budget, that should be done. We have to reach out to all of those people. The Minister rightly pointed out that everybody is suffering, but the older, poorer or more disadvantaged a person is, the more this issue will proportionately impact on him or her due to reduced income in many respects and increased demand for energy.
I understand that old people living alone in particular have additional costs because they only have one income coming in. I accept that. That is why in the past two years since becoming Minister for Social Protection I have increased the living-alone allowance. I have always been of the opinion that it takes the same amount of fuel to heat a house for two people as it does for one person. It is something of which I am very conscious. As I stated, the Government will look at this issue. It is like everything else; there are always difficult choices, but we are certainly committed to examining what we can do. I am going to do what I can in my Department of Social Protection.
