Joan Burton (Dublin West, Labour)

I propose to take Questions Nos. 6, 12 and 27 together.

My Department will spend over €530 million in 2011 on the fuel scheme and the telephone, gas and electricity elements of the household benefits package which will benefit some 390,000 people on household benefits and 375,000 on the fuel allowance. In 2005 there were 325,000 people on household benefits and 265,000 on the fuel allowance at a cost of €280 million. The costs have almost doubled in six years while the number of customers has risen by more than 20%.

The fuel allowance is paid for 32 weeks, beginning on 26 September. All customers will receive the standard rate of €20 per week, the rate previously received by the majority of customers, with no additional allowance for living in a smokeless area. The number of free units provided under the electricity and gas allowance were reduced from 2,400 to 1,800 with a view to generating savings of €17 million in 2011 and €65 million annually.

The House should be aware that my Department will cover the cost of the price increases in electricity which came into effect from 1 October and maintain the value of these allowances at 1,800 units. In other words, the price increases will not have an impact on the customers who benefit from this support. The electricity allowance, which was €35.80 per month, will increase to €39.40. The price increases recently announced will cost the Department over €4 million in 2011 and €17.3 million in a full year.

I am aware that some of the reductions may affect some people but it is important to remember that with the plus 20% increase in energy prices the Department will fully cover people who have the fuel allowance for all of those price increases. I am anxious that elderly people in particular would not be worried that the increases in fuel costs will not be covered by their allowance. It will be absorbed by the Department at a cost of up to €17 million per year.

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