Dáil Éireann Debate, Wednesday - 10 November 2004
91 Ms Burton asked the Minister for Social and Family Affairs his views on a finding by the Combat Poverty Agency that relative income poverty has increased dramatically since 1994; and if he will make a statement on the matter. [28199/04]
Amharc ar fhreagra194 Mr. Stanton asked the Minister for Social and Family Affairs if his attention has been drawn to the recent findings which show that welfare recipients are at a very high risk of poverty; and if he will make a statement on the matter. [28453/04]
Amharc ar fhreagraI propose to take Questions Nos. 91 and 194 together.
Ireland has over the past decade achieved an unprecedented level of economic growth. This has resulted in major improvements in average incomes resulting from increased employment; better paid jobs; more two income households resulting from a significant increase in female participation in the workforce; and lower tax levels in exchange for moderate wage increases to maintain economic competitiveness. A major outcome is that average income almost doubled over the same period from €83 in 1994 to €164 in 2001. Another major outcome is that over the period 1994 to 2001, the numbers in basic or consistent poverty reduced by almost two thirds from 15.1% in 1994 to 5.2% in 2001.
The consistent poverty indicator, developed by the ESRI, measures the percentage of persons below 60% of average income, who are also deprived of goods and services regarded as essential for living in Ireland today, as measured by deprivation indicators. Paradoxically, however, during the same period the percentage classified under an EU indicator as being at risk of poverty rose from 15.6% in 1994 to 21.9% in 2001. That indicator measures the percentage of persons below a relative income threshold of 60% of median income. The increase in the proportion at risk of poverty has arisen mainly from the almost doubling of average incomes during this period. Substantial increases in social welfare payments, which have amounted to 27% in real terms over a more recent period, 1997 to 2004, did not keep pace with the unprecedented increases in incomes generally.
However, it is important to point out that not all those below the 60% income threshold are in poverty, as that depends on other factors such as the extent to which their income is below the threshold, the length of time they have been living on a low income, the degree to which their assets will have run down while on a low income and the other resources they have at their disposal. In the case of Ireland, for example, the indicator does not reflect the high level of home ownership, especially among the elderly, and consequently the value to households of owning their own home. It also does not reflect access to household allowances in kind such as electricity, fuel, telephone rental and TV licence.
It is for those reasons that the consistent poverty indicator is a more reliable guide to those who are most deprived and in need of extra support. The over-riding objective of the national anti-poverty strategy, NAPS, is to reduce the number of persons who are in consistent poverty to 2% by 2007 and, if possible, to eliminate consistent poverty entirely. The Government is committed to implementing the measures in the NAPs designed to meet that objective. Improved income supports form a key component of these efforts. The Government, for example, has committed to increasing old age pensions to €200 per week and to making progress towards achieving the target level of €150, in 2002 terms, for the lowest rates of social welfare payments by 2007.
The at risk of poverty indicator also identifies those vulnerable to falling below general living standards. These include families with children relying on low incomes or on social welfare payments long term. A key element of the strategy is to further improve employment participation, create better jobs and target more resources at those who cannot work, such as pensioners for whom there is a commitment to provide higher weekly payments.
Poverty is a multi-dimensional problem, requiring actions across a wide range of policy areas if it is to be tackled decisively. In addition to income supports, the national anti-poverty strategy sets ambitious targets across a range of other policy areas, including employment, health, education, housing and accommodation, all of which impact on poverty and social exclusion. The strategy also addresses the needs of certain groups within society who are particularly vulnerable to poverty and social exclusion. These groups include women, children and young people, older people, people with disabilities, Travellers, prisoners and ex-prisoners.
It is important to emphasise also that economic sustainability is an essential feature of the Government's anti-poverty strategy, as it delivers high employment and high employment participation. It will be important to maintain the balance which has been developed between achieving the key economic and social objectives, having regard to our current stage of economic development, and the need to maintain economic competitiveness.
92 Mr. Ferris asked the Minister for Social and Family Affairs if his Department has been in discussions with Sustainable Energy Ireland with a view to carrying out fuel poverty action research; the stage that research has reached in view of the commitment to have the research completed in the second quarter of 2004. [28117/04]
Amharc ar fhreagraMy Department is in discussion with Sustainable Energy Ireland and with the Combat Poverty Agency with a view to carrying out an energy needs assessment project. Other agencies such as the Department of Health and Children, the Health Institute and the Department of the Environment, Heritage and Local Government will also be involved.
It is proposed to carry out an action research project in designated geographical areas where eligible persons will have an energy audit carried out in their homes. The energy audit will include energy advice to the household as well as minor remedial work, such as the installation of roof space insulation, draft proofing, fitting of hot water cylinder lagging jackets and energy efficient light bulbs.
The project will evaluate the effects of the measures undertaken from the point of view of comfort levels, health effects as well as changes in fuel costs and carbon dioxide emissions. The project is due to commence early in 2005 and will take some time to complete, as it will involve monitoring the effect of individual remedial works carried out as part of the project. This action research is not intended to measure the extent to which fuel poverty exists nationally but it may give some indications in that regard.
My Department provides financial supports to assist householders who are in receipt of long-term social welfare or health board payments and who are unable to provide fully for their own heating needs. A fuel allowance payment of €9 per week is paid to eligible households with an additional €3.90 per week being paid in designated urban smokeless fuel zones, bringing the total amount in those areas to €12.90 per week. These payments are made for the duration of the fuel season which lasts for 29 weeks from the end of September to mid-April. The fuel allowances represent a contribution towards a person's normal heating expenses.
Many households also qualify for electricity and gas allowances through the household benefits package. Expenditure by my Department on fuel, electricity and gas allowances for social welfare clients is expected to be some €175 million this year. The extent to which people on social welfare can afford fuel is kept under review in my Department. The objective of social welfare provision in this regard is to ensure that the combined value of weekly social welfare payments and fuel allowances rises in real terms, after compensating people for inflation, including fuel price inflation. In this regard, the significant increases in recent years in primary social welfare payment rates have improved the income situation for these groups in real terms relative to cost increases.
