Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Regarding fuel poverty, as we know, the best way to tackle fuel poverty in the long term is to improve the energy efficiency of the dwelling through proper building and household insulation. As the Deputy knows, I expanded the number of people who can qualify for the fuel allowance last year. I increased the income limits for the over-70s. In this budget, I dropped that to age 66 and over. Recipients of the fuel allowance can apply for the scheme run by the SEAI and, if eligible, the retrofitting will be conducted for free to the customer or person. We need to address the problem of heating our houses. The new means threshold was introduced for the over-70s, as I said, and it will apply to those over 66 from next year. From January 2023, the disabled benefit payment and half-rate carer's is disregarded when assessing means for fuel allowance purposes. In addition, in budget 2025, I announced the enhanced fuel allowance measures for those under 70. That will be available from January for those aged 66 and over. There is a €300 fuel allowance lump sum and there is €250 in energy credits. We increased the working family payment by €110 over the past two years, so that is considerable. People can earn more and still qualify for the payment. The fuel allowance has now become a qualifying payment for those on the carer’s allowance, so that is important. Why did I not do it for the working family payment? I have to make choices. I cannot do everything. I made those particular changes. The fact is I increased the disregards for the working family payment, so people get more money. I am trying to balance it in that respect.

Increasing the monthly gas and electricity payment rate or restoring the household benefits package in full can only be considered while taking account of the overall budgetary context and the availability of financial resources. In other words, I have choices to make. There has been no recent increase to the gas or electricity element of the household benefits package. The Government targeted the limited resources available towards the increase to the core social welfare payments and more targeted payments such as the fuel allowance. Electricity and gas prices have stabilised and energy credits of €250 are also being provided as part of the budget.

The Deputy mentioned the report on extending fuel allowance eligibility to the working family payment. I know Deputy Donnelly has that as an amendment. We will discuss that on Committee Stage this evening in the Dáil. I am awaiting a previously requested report on the provision of the fuel allowance to those in receipt of the working family payment and I will make that available as soon as it is completed. It is not finished yet. It will be made available as soon as it is there. Is that okay?

The Deputy mentioned benchmarking the State pension. The Government decided that we should calculate the pension rate of payment based on a smoothed earnings approach. That calculation will then act as an input into the budget preparations and be brought forward for the information of Government. I did that, and under this model endorsed by the Commission on Pensions, the pension rate should be set at 34% of average incomes with a relatively small margin of 1% to 3% during periods of high inflation. The Department calculated the rate earlier in the summer. We shared the outcome with the Department of public expenditure and reform and it informed the budget decisions that were announced. While the €12 increase in the weekly welfare rate did not on its own meet the smoothed earning calculation, the combination of the additional €12 per week with a significant set of one-off measures more than covers the gap. The measures taken by Government therefore exceed the increase calculated under the smoothed earnings approach. The €12 increase taken with the lump sum together makes it well covered. The Deputy is saying that when it is gone, it is gone. However, when it comes to the wintertime and you have to get fuel, it is good to have the money in your pocket. It is always hard to save it but it is nice to get those lump sums.

I refer to pensioners on the contributory State pension. Let us say somebody in their 70s living alone receives the maximum State pension. They will benefit by €1,423 from this budget. Indexation on its own would only have seen an increase of in or around €700, so it is well over double in the way we are doing it through the lump sum or the cost-of-living payments.

Have I covered everything? I think I have.