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Household Benefits Scheme

Dáil Éireann Debate, Wednesday - 3 February 2021

Wednesday, 3 February 2021

Ceisteanna (426)

Rose Conway-Walsh

Ceist:

426. Deputy Rose Conway-Walsh asked the Minister for Social Protection the increased cost to recipients of the household benefits package in relation to the electricity price increase which came into effect on 1 October 2020; and if she will make a statement on the matter. [5601/21]

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Freagraí scríofa

The household benefits package (HHB) comprises the electricity or gas allowance, and the free television licence.  The package is generally available to people living in the State aged 66 years or over who are in receipt of a social welfare type payment or who satisfy a means test.  The package is also available to some people under the age of 66 who are in receipt of certain welfare type payments. 

My Department will spend approximately €265.48 million this year on HHB for over 472,000 customers.  The package consists of the gas and electricity element of the package and the free TV licence element.  In 2021 the estimated cost of the gas and electricity element of the package is €195.31 million.  The gas and electricity element is paid at a rate of €35 per month, 12 months of the year. 

With regards to the electricity price increases, each company has its own different approach to pricing decisions over time, according to factors such as their overall company strategic direction and developments in their cost base.  While there have been a number of recent price increases, one supplier has frozen both electricity and gas prices until March 2021 and another has reduced its price for gas by 10%, highlighting the importance of switching to avail of the most competitive offer in the market.  Taking this into account it is not possible for my Department to provide the cost of the increase in electricity prices to each recipient of HHB.

The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of supports, energy efficiency awareness initiatives and investment in programmes, in order to improve the energy efficiency of the housing stock. 

In Budget 2021, the Government targeted one third of additional carbon tax revenues to go towards boosting the incomes of poorest in our society.  Based on ESRI research, three key social welfare payments were targeted for increases in the budget as a result - the Fuel Allowance, the Qualified Child Allowance and the Living Alone Allowance. 

From January 2021, the Fuel Allowance was increased by €3.50 per week to €28 for a period of 28 weeks, while the increase in carbon tax on solid fuels will not take effect until May 2021.  This will ensure that recipients will benefit from the increased payment over this winter period.   

Furthermore, from January 2021, the weekly rate of Qualified Child Increase was increased by €2 per week, from €36 to €38 per week, for children under 12 years of age and by €5 per week, from €40 to €45 per week, for children aged 12 and over.  It is estimated that this will benefit 419,000 children who are most in need.  In addition, the value of the Living Alone Allowance increased by €5 in Budget 2021.  This means that the value of the allowance has more than doubled over a two year period.

Under the Supplementary Welfare Allowance scheme, a special heating supplement may be paid to assist people in certain circumstances with special heating requirements.  In addition, exceptional needs payments may be made to help meet an essential, once-off cost which an applicant is unable to meet out of his/her own resources.  

The Deputy will appreciate that provision of income support is only part of the answer in terms of addressing energy costs.  One of the best ways to tackle energy costs in the long term is to improve the energy efficiency of the dwelling through proper building and household insulation.  This is the responsibility of the Department of Environment, Climate and Communications, the Department of Housing, Planning and Local Government and the Sustainable Energy Authority of Ireland (SEAI).  The SEAI provides a range of schemes in this area including the Better Energy Homes scheme, the Better Energy Warmer Homes Scheme, the Better Energy Warmth & Wellbeing Pilot Scheme, the Deep Retrofit Pilot Scheme, Better Energy Communities and Free Energy Efficiency Upgrades (co-funded by the Irish Government and European Union and delivered by the SEAI).

I trust that this clarifies the matter for the Deputy. 

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