Seán Sherlock (Cork East, Labour) | Oireachtas source

In the short space of time I have, I will begin with the area of agriculture. With regard to the agricultural budget, there has been much talk about new schemes, including agri-environment schemes. When one parses the document, however, it is very hard to get details. That difficulty characterises this budget generally. When one tries to delve into the minutiae of the figures and the wall of money announced in the last 24 hours, it is hard to find the devil in the detail. I will speak specifically about matters such as the green low-carbon agri-environment scheme, GLAS, and the transitional period in respect of CAP. We are still unsure as to how that money will filter down through the farm gate to the individual farmer. We will need more clarity on this matter in the coming days because we want to be able to interrogate the figures and to see what their impact will be for individual farm families.

I also wish to raise the issue of the fuel allowance, specifically as it relates to the social protection budget. When we analysed the figures in respect of the payment of the fuel allowance under budget 2021, we noticed that there is effectively a net reduction of approximately €49 in the payment. It is our contention that this is a cut rather than an increase, as the Government has portrayed it. The allowance was paid for four extra weeks during the 2019-20 season, which was worth an extra €98. The budget increase of €3.50 a week will apply for only 14 weeks from January. This additional payment will be worth €49 over the full 2020-21 fuel season. After the failure of the Government to provide an extra four weeks of fuel allowance, as it did last winter, those receiving the payment will be down €49 this winter. Ceapaim go bhfuil an Aire Stáit ag éisteacht.

We are calling on the Government to provide another four weeks of the fuel allowance and reverse the effective cut in the amount that 375,000 people will receive this winter. The four extra weeks of fuel allowance were paid in the 2019-20 season in April. This is key to this issue. Those extra weeks were worth €24.50 a week, or a total of €98. In the budget, those much-needed four extra weeks were not retained. The payment will instead increase by €3.50 from January 2021. That increase, however, will only apply to 14 weeks of the 2020-21 fuel season, and that is worth €49 or half of what people received this year. In effect, this is a cut. The nearly 375,000 people relying on the fuel allowance this winter will have nearly €50 less to spend to keep themselves warm.

In the middle of this pandemic, older and vulnerable people are spending more time at home, but they will receive less this winter than they did in the one just gone. Even taking account of the increase, the value of the extra payment across 28 weeks in 2021 - the last 14 weeks of the 2020-21 fuel season and the first 14 weeks of the 2021-22 season - will be €98, which is exactly the same as what was provided in the four extra weeks in April of this year. Taking that into account, however, we must remember that the carbon tax increase on fuel comes into effect in May, which means that next winter, people will be facing higher heating bills but without any real extra financial support from the fuel allowance payment. We are calling on the Government, even at this late stage, when the Minister for Employment Affairs and Social Protection, Deputy Humphreys, comes before us, to take on board our suggestion that providing an extra four weeks of fuel allowance this winter will negate the cut.

The technical element of this issue is that the fuel allowance is paid over 28 weeks, from the end of September through to March. The 2019-20 fuel season was extended by four weeks because of the impact of Covid-19. That was worth €98, which in real terms was €24.50 multiplied by four weeks. In 2021, the payment will increase, as I have detailed, by €3.50 a week from January. Over a full 28 weeks that will be worth €98. That higher rate is only being paid for 14 weeks of this fuel season, however, and that will be worth €49. In essence, therefore, people on fuel allowance this winter will be down by €49 compared to the 2019-20 fuel season, and they will also face more expensive fuel costs next winter because of the increase in carbon taxes.

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