Dáil Éireann Debate, Tuesday - 8 December 2015
116. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection the saving she has achieved from the cuts to free electricity and gas units during the lifetime of the Government, by year to date; and if she will make a statement on the matter. [43747/15]
Amharc ar fhreagraThe Department pays an electricity or gas allowance as part of the household benefits package to 416,000 customers, at an estimated cost of €227 million in 2015. The electricity and gas allowance is currently €35 per month. There have been no reductions to this allowance in recent budgets. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full.
Changes were made to the household benefits package and fuel scheme during 2011. These changes were provided for in Budget 2011, which was introduced by the previous Government, but details were not specified at the time. The number of free units provided under the electricity and gas allowance was reduced to the level at the start of 2007 (from 2,400 to 1,800). This change was effective from September 2011. Estimated savings for this measure at that time were €29.8 million per year. As this benefit is now delivered by means of a cash amount, rather than the purchase of a set number of units, my Department is no longer in a position to state the actual saving this particular change will deliver in 2015.
Effective from April 2012, new applicants for carer’s allowance, who are not living with the person for whom they are providing care, are not entitled to household benefits. It is estimated that this affects approximately 1,000 people in a full year, yielding an estimated saving of approximately €420,000 per annum.
In 2013, the electricity and gas allowance was aligned with the cheapest available market rate for 1,800 units of electricity. Previously the rate had been based on the price of one supplier. This provided a saving to the Department but also allowed customers to obtain savings by switching to cheaper companies without the loss of any credit that may have built up, which wasn’t possible under the old system. Estimated savings from this measure was €20 million in 2013 and €22.6 million in each subsequent full year.
