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Social Welfare Code

Dáil Éireann Debate, Tuesday - 22 March 2022

Tuesday, 22 March 2022

Ceisteanna (43, 72)

Mick Barry

Ceist:

43. Deputy Mick Barry asked the Minister for Social Protection if she will prepare options to expand the eligibility and rates for the fuel allowance given the rapid increase in fuel prices; and if she will make a statement on the matter. [14201/22]

Amharc ar fhreagra

James O'Connor

Ceist:

72. Deputy James O'Connor asked the Minister for Social Protection her strategy to review the payment rate of the fuel allowance in view of increased costs; and if she will make a statement on the matter. [14828/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 43 and 72 together.

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 to improve the energy efficiency of the housing stock in Ireland.

As part of the overall welfare budget package of €600m in increases secured for 2022, I was pleased to be able to increase the Fuel Allowance payment by €5 per week effective from Budget night.  I also increased the weekly income threshold for Fuel Allowance by €20 from €100 to €120 over the relevant State Pension Contributory rate.

Aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices, the Government recently announced additional expenditure measures to a total of over half a billion euro to help mitigate the effects of these rising costs.

As part of these measures, an additional lump sum payment of €125 was paid to all households in receipt of the Fuel Allowance payment.  It is expected that this additional lumpsum will cost an estimated €49 million.

This payment in addition to the Budget increase will mean low-income households will see an increase of 41% this fuel allowance season compared to last season.

The recently announced Electricity Costs Emergency Benefit Payment is another key measure and will be paid in addition to the gas and electricity element of the HHB package to qualifying households.  Approximately 2.1m households will benefit by €200 each from the new scheme. 

The combined worth of these payment to fuel allowance recipients is €325, which is the equivalent of almost 10 weeks of Fuel Allowance payment.

Furthermore, due to the continuing rise in inflation and as part of the economic consequences of the tragic conflict in Ukraine, the Government recently reduced excise duty on fuel.

Finally, the Department of Social Protection operates both Exceptional and Urgent Needs Payments as part of the Supplementary Welfare Allowance scheme for people who have an urgent need, which they cannot meet from their own resources.  These payments are available through our Community Welfare Officers.

Any further expansion of the qualifying criteria or increase in rate of Fuel Allowance would have cost implications and could only be considered while taking account of the overall budgetary context and the availability of financial resources.

I hope this clarifies the matter for the Deputies.

Barr
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