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Cost of Living Issues

Dáil Éireann Debate, Thursday - 6 July 2023

Thursday, 6 July 2023

Questions (143)

Darren O'Rourke

Question:

143. Deputy Darren O'Rourke asked the Minister for Social Protection if she aware of the CSO’s “estimated inflation by household characteristics March 2023” (details supplied) which noted that high energy costs were one of the key drivers of average inflation for households and that households with the lowest income experienced higher inflation; her plans to address; and if she will make a statement on the matter. [32924/23]

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Written answers

The Government is very aware of the affect of energy costs on low-income households and is committed to protecting vulnerable households from the impact of energy costs through a combination of supports, energy efficiency awareness initiatives and investment in programmes to improve the energy efficiency of the housing stock.

As the Deputy is aware, the Government has provided a range of supports to assist people with rising energy costs to date, through a series of targeted lump sum payments and increases in core payment rates for those in receipt of social welfare payments, and through the energy credit scheme which was available to all households.

As part of the Government's cost of living measures in Budget 2023, an Autumn Cost of Living Double Payment was paid to Social Protection recipients in October 2022.

In November 2022, a €200 Lump Sum Payment was paid to pensioners and people with a disability receiving the Living Alone Allowance, a €500 Cost of Living Payment was paid to people receiving Carer’s Support Grant and a €500 Cost of Living lump sum was paid to people in receipt of Disability Allowance, Invalidity Pension and Blind Pension. A €400 additional Lump Sum payment was also paid to all households in receipt of the Fuel Allowance Payment. A double month of Child Benefit was paid and a €500 lump sum payment was made to people in receipt of Working Family Payment.

In December, a Christmas Bonus Double Payment was paid to 1.3 million Social Protection recipients including pensioners, carers and people with disabilities.

From January 2023, the maximum rate of core Social Welfare rates was increased. There were proportionate increases for qualified adults and for people getting a reduced rate.

Also, from January 2023, a new Fuel Allowance means threshold was introduced for people aged 70 years and over. The new means threshold is €500 for a single person and €1,000 for a couple. Under the formula used to assess means for the Fuel Allowance for over 70s, the threshold for capital that is disregarded in the assessment was increased from €20,000 to €50,000. The weekly means threshold for those aged under 70 was increased by €80 to €200 above the appropriate rate of State Pension (Contributory). Similarly, the allowable means for HHB purposes for those aged between 66-69 not in receipt of a qualifying payment was also increased by €80 to €200 above the appropriate rate of State Pension (Contributory).

The enhanced electricity credit of €600 is another important Government measure announced in the Budget. This benefitted all households.

A further range of measures to support people through this difficult period was announced in February this year. This package included a €200 lump sum payment which was paid to over 1.3 million recipients in receipt of long-term social welfare payments.

The Government will continue to monitor the cost-of-living situation closely and how it can support people on low incomes and those on social welfare payments who are at risk of fuel poverty. All options will be kept under review, together with trends in prices, to inform preparations for the budget later this year. We will, however, have to take account, as always, of the overall budgetary context and the availability of financial resources.

Finally, my Department provides Additional Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources. These payments are available through our Community Welfare Officers.

I trust that this clarifies the matter for the Deputy.

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