Clare Daly
Ceist:162. Deputy Clare Daly asked the Minister for Social Protection the savings from cuts to pensioners for fuel and electricity and the number affected. [3915/13]
Amharc ar fhreagraTuesday, 29 January 2013
Ceisteanna (162, 166)
Mick Wallace
Ceist:166. Deputy Mick Wallace asked the Minister for Social Protection the reason that she reduced the electricity/gas allowance element of the household benefits package at a time of rising heating costs; and if she will make a statement on the matter. [4042/13]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 162 and 166 together.
I am acutely aware that any reduction in social welfare payments or benefits are difficult for those affected. The overall concern of the Government in Budget 2013 was to protect the primary weekly social welfare rates. To allow us to protect the core payments which people receive such as pensions, disability and carer’s allowance, we had to look very carefully at other additional payments such as the household benefits package.
The household benefits package comprises the electricity/gas allowance, the telephone allowance and the free television licence. The package is primarily available to older people, people with disabilities and carers. Following Budget 2013, the structure of the electricity/gas allowance has changed and is now aligned with the best average market rate currently available from energy suppliers for an unchanged 150 units per month. For those customers who receive a bill, this amount will appear as a cash credit of €35 on their bill. Other customers will continue to receive a cash allowance as before.
Between 2005 and 2011 the number in receipt of the electricity/gas allowance rose by 20% and there are now 405,000 recipients in receipt of an allowance. The cost of the electricity and gas allowances has risen from €110 million in 2005 to an estimated outturn of €201 million in 2012, an increase of 83% over seven years. In the current economic climate these increases are unsustainable. This change to the electricity and gas elements of the household benefits package will bring significant savings, with estimated expenditure in 2013 of €176 million, while aiming to encourage customers to achieve better savings through greater mobility.
The Affordable Energy Strategy drew attention to the fact that customers in receipt of household benefits were much less likely than other customers to switch energy supplier to obtain better value. Only 16% of social welfare customers have switched companies compared to 42% nationally. The Commission for Energy Regulation (CER), following discussions with officials from the Department, has been liaising with the National Consumer Agency with a view to ensuring that information is available for our customers to help with switching companies. In August 2011 the CER published a paper which set out a framework for accreditation for price comparison websites (CER/11/144) following which a website www.bonkers.ie was accredited. This website presents comparison data which can greatly assist those wishing to switch companies and achieve the best value.
The number in receipt of the telephone allowance has also increased significantly in recent years, in line with increases in customers receiving qualifying payments, as well as the increases in those over 70. Our demographics are such that this number will continue rising. In 2005 there were 311,000 customers in receipt of telephone allowance; in 2012 there are 397,000, an increase of 28% over seven years. The allocation for the telephone allowance scheme has been reduced by €61 million in 2013. As a result the monthly allowance has been reduced from €22.60 to €9.50. This is a cost saving measure. In recent years, the nature of the telephone market has been transformed with deregulation, mobile services and bundled services including television, broadband and telephone. There is a wide variety of deals available, for example, it is possible to get a standard pay-as-you-go brand name mobile telephone for as little as €19.99 in large retailers.
I am keenly aware of the impacts on the Department’s customers. In this regard, it should be noted that Ireland’s older population has the lowest rate of consistent poverty and, as a group compared to the rest of the population, are least likely to be at risk of poverty - pointing to the adequacy and importance of the State pension. Between 2004 and 2010, consistent poverty for older people (those over 65) fell from 3.3% to 0.9%. The at risk of poverty rate for people in that age group fell from 27.1% to 9.6% over the same period. In addition the fuel allowance scheme was protected in Budget 2013 and recipients will continue to receive this payment of €20 per week as part of their weekly social welfare payment for the duration of the fuel season, which runs until April 2013.
If a customer of the Department is experiencing difficulty, an exceptional needs payments may be made to help meet an essential, once-off cost which an applicant is unable to meet out of his or her own resources. There is no automatic entitlement to this payment. Each application is determined by a community welfare officer based on the particular circumstances of the case.
Question No. 163 answered with Question No. 153.
Question No. 164 answered with Question No. 154.