Dr. Tricia Keilthy:

We thank the committee for the invitation to present our latest report Warm, Safe, Connected? Priorities to Protect People in Energy Poverty. The report contains our recommendations across policy, practice and regulation to provide the best possible protection and support to people experiencing the worst impacts of the energy crisis.

In 2022 St. Vincent De Paul received more than 230,000 requests for assistance which was an increase of around 20% from the previous year. Requests related to energy increased by 40%. The first quarter of this year has seen an approximate 19% increase in requests for help overall, and an approximate 50% increase in requests for help with energy, when compared to the first quarter of 2022.

This year, we are seeing the levels and the concentration of need among people in energy poverty increase. People are seeing multiple bill cycles pile up and people are returning to St. Vincent De Paul for support.

Although the heating season may be coming to an end the situation continues to develop rather than abate. While usage may reduce into the summer period it will not become affordable. The fuel allowance season is over and the disconnection moratorium has come to an end. Over this winter, people on low incomes have faced impossible situations. Put simply, the choice will be between knowing the costs and arrears are spiralling, the next bill will be unpayable and finding money from the food bill to put twice as much towards the prepay meter or people having to cut back and go without the energy they need.

The extent of difficulties facing people is evident in the CSO data on deprivation from the first half of 2022. Focusing on households who could not afford to keep their home adequately warm, the national rate doubled from 3.2% to 7.4% of people between 2021 and 2022. Using population estimates, we calculate this to have been over 377,000 people. For rural households the rate increased fourfold. The highest rates were seen for one-parent families, people with disabilities and unemployed people. The rate for renters almost doubled to 13.5% with three times that of owner-occupiers.

The Society of St. Vincent de Paul welcomes the measures that the Government, CRU suppliers and civil society have taken which includes a new energy action plan; targeted lump-sum payments to social welfare recipients; extended consumer protections; and energy suppliers setting up or contributing to hardship funds. However, there have been missed opportunities and measures that need to go further. The society's report contains six policy recommendations and six recommendations directed towards suppliers and the regulator. Today, we will focus on a selection of these policy recommendations.

On the fuel allowance and social protection, we know that core social welfare rates have not kept up with inflation. While a combination of universal and targeted payments have provided essential supports to people, they leave the guaranteed rate of social welfare devalued and people with no certainty about what their income will be in the future. We need to see both core social welfare rates and the fuel allowance adjusted in the coming budget to match inflation, at a minimum, and a commitment given to take an evidence-based approach to increases, which is rooted in the cost of a minimum essential standard of living.

On energy costs, we are particularly concerned that households that receive the working family payment and those recently unemployed have not been adequately recognised as needing support as they do not receive the fuel allowance. Not extending the fuel allowance to recipients of the working family payment impacts approximately 103,000 children in these households.

It is essential that we have a targeted mechanism to provide stability on prices for people on low incomes. A targeted social energy tariff for those on means-tested benefits would provide a flexible medium-term solution that complements cash transfers by the Government until a point in which households in energy poverty are able to access more affordable energy either through better insulated homes or lower energy prices. Social tariffs are in use in EU countries to provide Government with a mechanism to target supports and ensure people on low incomes are guaranteed an essential service at affordable levels. This could be done through a reduction in the overall bill cost or a unit rate through Government subsidisation and windfall taxes.

An important commitment in the new energy poverty action plan was to extend the definition of vulnerable energy customers to encompass people on very low incomes, which requires legislative change. This is important as it offers extended protections from disconnections and being moved to the most economic tariff for customers' payment choice. A commitment was given that this would last two years but we have reached the end of this winter and have not seen this aspect progressed.

There is currently a significant gap in the supports available to people in energy poverty and struggling with energy costs. This gap has been apparent through the crisis. We believe the gap will become more acute as we consume energy changes as an essential response to the climate crisis. People in energy poverty usually face a combination of high costs or difficulties with the energy market, issues with housing or heating systems, and income issues. We, therefore, propose that, as part of a just transition, the Government funds a new service of community energy advisers who are present in local areas and provide one-to-one tailored support.

They will be able to make sure that people are able to navigate the energy market, link with financial supports and avail of the energy efficiency measures available to them, including simple, quick-win measures at home. This is an essential missing link and we are trying to help link people with that essential support.

I thank the committee members for their attention and we are happy to take any questions they may have.