Dáil Éireann díospóireacht -
Wednesday, 2 May 2001

Vol. 535 No. 2

Written Answers - Social Welfare Benefits.

Noel Ahern

Ceist:

188 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs when the scheme of free electricity units for senior citizens was introduced; if the level of free units has remained static since; and if he will consider increasing the number of units. [12524/01]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

The free schemes, including the free electricity allowance scheme, are generally available to people aged 66 years or over, who are living alone and are in receipt of a social welfare type payment or who pass a means test. They are also available to carers and people with disabilities under the age of 66 who are in receipt of certain welfare type payments. Widows and widowers aged from 60 to 65 whose late spouses had been in receipt of the free electricity allowance retain that entitlement in order to ensure that households do not suffer a loss of entitlement following the death of a spouse.

From October 2000, the free schemes, including the free electricity allowance scheme, were extended to all persons aged 75 and over, regardless of their income and household composition. In addition, provision was made in Budget 2001 to further extend the free schemes to all persons aged 70 years and over from this month.

The free electricity allowance was introduced in October 1967 and it covered 600 units per annum. In 1972 it was increased to the current 1,500 units each year, 200 units per billing period in the summer and 300 units per billing period in the winter, in addition to the normal standing charges. VAT due on this standard allowance is also covered. The value of the allowance, if fully taken up, is £154.09 per annum.

In the review of the free schemes, published in April 2000 by the Policy Institute, Trinity College Dublin, the issue of increasing the number of electricity units was examined. The review noted that the objective of the allowance is to provide for a basic standard of usage and considered that the major advantage of the allowance is that it is based on a unit allowance and therefore keeps pace with electricity price increases. However, the review noted that the basic standard of electricity usage has increased over the years due to the growth in electrical appliance use. Therefore, despite the inflation-proof nature of the allowance, it is not now as valuable as it was in the past. Accordingly, the review proposes that the allowance be increased to maintain its overall value to the recipient.

This recommendation, which has expenditure implications, will be examined in the context of future budgets and available resources.