Dáil Éireann Debate, Tuesday - 26 April 2022
1039. Deputy Sean Sherlock asked the Minister for Social Protection the estimated annual cost of increasing the electricity or gas allowance of €35 per month by €5, €10 and €15, respectively; the number of persons that are currently in receipt of each allowance; and if she will make a statement on the matter. [20238/22]
View answerThe Household Benefits package (HHB) comprises the electricity or gas allowance, and the free television licence. The package is generally available to people living in the State aged 66 years or over who are in receipt of a social welfare type payment or who satisfy a means test. The package is also available to some people under the age of 66, who are in receipt of certain welfare type payments. My Department will spend approximately €273 million this year on HHB.
In 2022 the estimated cost of the gas and electricity element of the package is €203 million. The gas and electricity element is paid at a rate of €35 per month, 12 months of the year. At the end of March there were 428,818 households in receipt of the electricity element of the HHB and 51,625 in receipt of the gas element.
It is estimated that the average number of recipient households for 2022 will be in excess of 483,000. Based on this, the estimated additional annual costs of the measures proposed are set out in the table below.
|
Proposed Monthly Increase |
Estimated Annual Additional Cost (based on 483,000 recipient households) |
|
€5 |
€29 million |
|
€10 |
€58 million |
|
€15 |
€87 million |
Any decision to enhance or increase the electricity and gas aspect of the package would have budgetary consequences and would have to be considered in the context of overall budget negotiations.
The Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices. To help mitigate the effects of these rising costs, the Government has announced significant additional expenditure which will make a positive impact on the incomes of all households in our country.
As part of the measures included in the National Energy Security Framework, a further additional lump sum payment of €100 will be paid to all households in receipt of the fuel allowance in the last week of the fuel allowance season – a payment equivalent to over 3 weeks additional fuel allowance. This payment will be provided in mid-May.
This means that low-income households will see an increase of 55% in Fuel Allowance support provided during this Fuel Allowance season compared to last season. A recipient household which would have received €735 in fuel season 2020/2021 would see an increase of €404 to €1,139 in fuel allowance payments in fuel season 2021/2022. When taken in conjunction with the electricity costs emergency benefit payment, due to be paid in April, this household would have received over €600 in additional targeted Government supports over the course of this fuel season. €600 is the equivalent of over 18 weeks additional fuel allowance.
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.
I hope this clarifies the matter for the Deputy.
