Dáil Éireann Debate, Wednesday - 2 July 2008
196 Deputy Tom Hayes asked the Minister for Social and Family Affairs the increase in the fuel allowance, in tabular form, every year since its inception; if she will provide the annual inflation rate for that sector for every year in that table and provisionally include the figures for the first half of 2008; and if she will make a statement on the matter. [26296/08]
Amharc ar fhreagra200 Deputy Tom Hayes asked the Minister for Social and Family Affairs the measures that have been taken to assist persons on low incomes to avoid fuel poverty since June 2007; the measures planned to tackle this problem in the future; and if he will make a statement on the figure of 18.5% of households here suffering fuel poverty. [26317/08]
Amharc ar fhreagraI propose to take Questions Nos. 196 and 200 together.
This Department's role is to assist social welfare recipients with heating costs, both through their basic payments and through the fuel allowance scheme and the household benefits package of electricity and gas allowances. These schemes have been improved significantly in recent years.
The national fuel allowance scheme assists householders on long-term social welfare or health service executive (HSE) payments with meeting the cost of their heating needs during the winter season. The allowance represents a contribution towards a person's normal heating expenses. It is not intended to meet those costs in full. Over 290,000 people will benefit from this scheme in 2008.
In January 2007, the weekly rate of fuel allowance was increased by €4 from €14 to €18 a week or €21.90 for recipients living in designated smokeless areas. The income threshold for eligibility for fuel allowance was also increased by €49 from €51 to €100 above the appropriate weekly rate of state pension (contributory). The duration of payment of fuel allowance was extended to 30 weeks in 2008.
According to the Consumer Price Index for May 2008, the overall cost of home heating fuel products has increased by 7.4% in the last 12 months and by 120.3% since the inception of the fuel allowance scheme in 1987. The rate of fuel allowance payment has increased from £5.00 (€6.35) in 1987 to a current value of €18.00, an increase of 183.5%. The fuel allowance rates and the CPI for home heating fuels since 1987 are shown in the following tabular statement.
Electricity and gas allowances under the household benefits package, are payable throughout the year to over 355,000 pensioners, people with disabilities, and carer households towards their heating, light and cooking costs at an estimated overall scheme cost of €159m in 2008. The electricity allowance covers standing charges plus VAT and up to 2,400 units of electricity in each billing period, increased from 1,800 units in January 2007. The gas allowance covers a cash equivalent amount.
The supplementary welfare allowance scheme can also be used to assist people in certain circumstances with specific heating needs due to infirmity or a particular medical condition.
The income maintenance needs of those on social welfare payments have been met in recent years through increased primary social welfare rates. Government policy has focused on significantly increasing social welfare rates to ensure that people can meet their basic living costs, including heating, throughout the year and also achieve an improvement in quality of life. This is a more costly approach than increasing fuel allowance as the increase is paid for the full year and not just the 30 weeks of the winter heating season. Since December 2001, overall inflation has increased by 27% while energy product prices have increased by over 71.4%. However, increases in social welfare payments have been between 71% and 88% in the same period.
The fuel poverty figure referred to by the Deputy, while from a 2007 report, actually relates to 2001. The report concerned, the "All Ireland policy paper on fuel poverty and health", which was published by The Institute of Public Health acknowledged that there has been an overall decline in fuel poverty over the past decade and that while the fuel and household benefits package has sought to be responsive to the issue of rising fuel prices, putting warmth into thermally inefficient homes is ultimately a bad long-term investment. A primary contributory factor to fuel poverty has been identified as the energy efficiency of the private and public housing stock.
The Department is cooperating with a number of organisations including Sustainable Energy Ireland, Combat Poverty Agency and the Department of the Environment Heritage and Local Government in action research projects on energy efficiency. Reports on these research projects will help to inform Government policy in relation to fuel poverty.
Any improvements to social welfare programmes to assist with heating costs would have considerable cost implications and will be considered in a budgetary context and in the light of resources available for improvements in social welfare payments generally. The main focus of the Government will be on increasing social welfare payments in real terms to enable social welfare recipients to better meet heating and other needs.
|
Date |
Fuel Allowance rate |
CPI for Home Heating FuelAverage annual index* |
% age annual increase |
|
€ |
|||
|
Jan-88 |
6.35 |
77.8 |
0.00 |
|
Jan-89 |
6.35 |
77.8 |
0.00 |
|
Jan-90 |
6.35 |
79.9 |
2.70 |
|
Jan-91 |
6.35 |
82.1 |
2.75 |
|
Jan-92 |
6.35 |
84.9 |
3.41 |
|
Jan-93 |
6.35 |
85.4 |
0.59 |
|
Jan-94 |
6.35 |
85.7 |
0.35 |
|
Jan-95 |
6.35 |
86.3 |
0.70 |
|
Jan-96 |
6.35 |
86.4 |
0.12 |
|
Jan-97 |
6.35 |
87.8 |
1.62 |
|
Jan-98 |
6.35 |
87.8 |
0.00 |
|
Jan-99 |
6.35 |
87.8 |
0.00 |
|
Jan-00 |
6.35 |
89.4 |
1.82 |
|
Jan-01 |
6.35 |
97.5 |
9.06 |
|
Jan-02 |
9.00 |
99.9 |
2.46 |
|
Jan-03 |
9.00 |
102.9 |
3.00 |
|
Jan-04 |
9.00 |
110.0 |
6.90 |
|
Jan-05 |
9.00 |
117.8 |
7.09 |
|
Jan-06 |
14.00 |
136.3 |
15.70 |
|
Jan-07 |
18.00 |
149.5 |
9.68 |
|
Jan-08 |
18.00 |
160.7 |
7.49 |
|
May-08 |
18.00 |
171.4 |
6.66 |
197 Deputy Pat Breen asked the Minister for Social and Family Affairs her plans to review the grant aid available to parents to meet the cost of school clothing and footwear; if her attention has been drawn to the recent Combat Poverty Agency conference highlighting the financial difficulties that families face putting children through school; and if she will make a statement on the matter. [26111/08]
Amharc ar fhreagraThe Back to School Clothing and Footwear allowance scheme provides a one-off payment to eligible families to assist with the extra costs when their children start school each autumn. The allowance is not intended to meet the full cost of school clothing and footwear but only to provide assistance towards these costs.
A person may qualify for payment of an allowance if they are in receipt of a social welfare or Health Service Executive payment, are participating in an approved employment scheme or attending a recognised education and training course and have household income below standard levels.
The back to school clothing and footwear allowance scheme is an important support for parents at a time of particular financial strain. The improvements to the scheme in recent years have provided a major boost to meeting the financial costs associated with return to school for those who are most need assistance.
Since 2005, the allowance has been increased from €80 to €200 in respect of qualified children aged from 2 to 11 years and from €150 to €305 for those aged from 12 to 22 years. These are increases of 150% and 103%, respectively. In 2006, the income limits for BSCFA were increased by €50 to €100 above the state pension (contributory) rate.
The number of children benefiting from the allowance increased from 161,000 in 2006 to over 180,000 in 2007. The annual expenditure on the scheme has increased from €16.7m in 2005 to €40m in 2007. Over €46m has been provided for the scheme in 2008.
These improvements in BSCFA are very significant when viewed in the context of clothing and footwear price trends. According to the Consumer Price Index for May 2008, the overall cost of clothing and footwear has fallen by 3.7% over the past twelve months. The adequacy of back to school clothing and footwear allowance payments will be kept under review. Any changes to the structure of the scheme, rates of payment, income limits or amendments to the qualifying criteria would have cost implications and would have to be considered in a budgetary context and in the light of resources available for improvements in social welfare payments generally.
198 Deputy Tom Hayes asked the Minister for Social and Family Affairs the number of people who received the fuel allowance every year since its inception. [26298/08]
Amharc ar fhreagraThe national fuel allowance scheme was introduced in 1987 as a result of a Government decision to rationalise the Urban and National Fuel Schemes which existed at that time. The scheme assists householders on long-term social welfare or health service executive payments, with meeting the cost of their heating needs during the winter season.
The smokeless fuel allowance scheme was introduced in Dublin and the surrounding areas in October 1990, and extended later to other parts of the country, in response to smoke control regulations introduced by the Department of the Environment. This allowance is paid in addition to the fuel allowance in areas where the sale of bituminous fuel is banned.
The number of people who received the fuel allowance since 1987 is shown in the following tabular statement.
|
Year |
Normal Allowance |
Smokeless Allowance |
|
1987 |
180,735 |
— |
|
1988 |
205,634 |
— |
|
1989 |
210,402 |
— |
|
1990 |
219,744 |
74,000 |
|
1991 |
230,000 |
74,000 |
|
1992 |
245,507 |
76,000 |
|
1993 |
255,000 |
77,000 |
|
1994 |
263,600 |
78,000 |
|
1995 |
197,654 |
100,000 |
|
1996 |
216,592 |
98,700 |
|
1997 |
286,800 |
98,000 |
|
1998 |
277,000 |
96,600 |
|
1999 |
274,300 |
114,000 |
|
2000 |
270,000 |
109,000 |
|
2001 |
265,000 |
108,000 |
|
2002 |
259,000 |
115,000 |
|
2003 |
270,000 |
118,000 |
|
2004 |
272,000 |
121,000 |
|
2005 |
266,000 |
115,000 |
|
2006 |
288,800 |
114,200 |
|
2007 |
295,000 |
118,000 |
