Dáil debates

Wednesday, 3 February 2021

Household Utility Bills Support: Motion [Private Members]

 

10:30 am

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all words after “Dáil Éireann” and substitute the following: “notes that:
— the Government is firmly committed to targeting supports to those who need them most and is also committed to combatting fuel poverty by a variety of measures and in supporting those on low incomes with their home heating costs through the Fuel Allowance scheme and other supports;

— the Government is constantly monitoring the supports it provides during this Covid-19 pandemic;

— the budget for the Supplementary Allowance Scheme is not capped and is operated in a discretionary and flexible manner by Community Welfare Officers in the Department of Social Protection;

— the use of targeted schemes such as the Supplementary Welfare Allowance ensures that resources are targeted where they are needed most;

— the Government is providing unprecedented support through the Covid-19 Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme to those who have lost employment during the period of the pandemic;

— since last March over 14 million PUPs have been issued, with over 820,000 people receiving support under the scheme and the total cost of PUP to date is about €5.5 billion;

— approximately 443,000 people have benefited from the Temporary Wage Subsidy Scheme and Employment Wage Subsidy Scheme at a total cost of over €4.5 billion; and

— the rates of PUP are more than double the support available to impacted workers in Northern Ireland where payments are about £100 weekly; and
further notes that:
— over 372,000 households will be supported in the 2020/2021 fuel season starting October 2020 and concluding in the week of 9th April, 2021, at a cost of over €300 million;

— an estimated 465,000 households receive electricity or gas allowances through the Household Benefits Package throughout the full year at a cost of €265 million annually;

— the Fuel Allowance was increased by €3.50, from €24.50 per week to €28 per week, with effect from 4th January, 2021, the highest weekly rate ever, and other targeted increases to Qualified Child payments and the Living Alone Allowance also took effect in January;

— the total value of the fuel allowance in Ireland across a full free fuel season is €784 per household, which far exceeds the value of equivalent payments in neighbouring jurisdictions such as Northern Ireland where, for example, the Winter Fuel Payment ranges in value from £100 to £300;

— the fuel allowance season was extended in 2020 by four weeks at a cost of almost €37 million, and the Government will, as it does every year, consider if the 2021 fuel allowance season should be extended beyond 9th April depending on the economic circumstances and prevailing weather conditions;

— in addition to the Fuel Allowance, the Government provides targeted supports to people experiencing exceptional costs or financial difficulties through the Supplementary Welfare Allowance scheme, and payments can be, and are made, under this scheme in respect of exceptional heating costs;

— the Government is committed to supporting the retrofitting of the housing stock, which is the ultimate solution to fuel poverty;

— this year will see the largest budget for retrofitting in the history of the State, including over €100 million in capital funding to support lower income households to retrofit their homes through the Warmer Homes Scheme, representing a €47 million increase on the 2020 allocation; and

— in addition, funding of €65 million is being made available in 2021 through the Department of Housing, Local Government and Heritage, to support the retrofitting of up to 2,400 social housing homes.”

I welcome the opportunity to have this discussion in the House on this very important matter. We are all concerned with protecting our people from the severe financial and economic consequences of the pandemic. I accept that this has been a very difficult time. Since Covid-19 first arrived on our shores last March, the Government has, at all times, sought to support workers and families. My Department mobilised quickly to introduce the pandemic unemployment payment and, thanks to the extraordinary efforts of staff throughout the country, we were able to get payments to more than 600,000 people in a matter of days at the onset of the pandemic last spring. The hard work of the staff in the Department of Social Protection continues. It is worth remembering that, when the PUP was introduced, it was originally intended to remain in place for a period of just six weeks.

As we know now, it has been in place for over a year and beyond. Over 14 million payments have issued to over 820,000 people under the PUP to date, at a total cost of over €5.5 billion. A further 443,000 people have been supported under the wage subsidy schemes at a cost of €4.5 billion. That is a total of €10 billion. These supports are unprecedented in scale from any Government in the history of the State but they were and remain the right thing to do to protect workers and families throughout the country. It is worth noting that independent research from the ESRI has shown that these supports have been particularly effective at protecting those on lower incomes.

I want to make it very clear today that the Government is absolutely committed to supporting those on low incomes with their home heating costs through the fuel allowance scheme and other supports. Over 372,000 households will be supported in the current fuel season which started at the end of last September. We will conclude in mid-April at a cost of over €300 million. In addition, 465,000 households receive an electricity or gas allowance of €420 per year through the household benefits package at a cost of €265 million annually. I want to build further on these supports and that is why in budget 2021 the fuel allowance was increased by €3.50 to €28, the highest ever weekly rate for fuel allowance. That measure took effect in January which means that the total value across a fuel season is now €784. By comparison, the winter fuel payment in Northern Ireland is between €100 and €300.

The Government will, of course, continue to keep all of our supports under review as we have done at all times throughout the pandemic. For example, the fuel allowance season last year was extended by four weeks at a cost of almost €37 million. I will continue to keep the need for a similar extension under review this year, taking account of the circumstances we are in and the prevailing weather conditions closer to the time.

I am aware that a point was raised here about women who have had to give up work to carry out childminding responsibilities. Women who have to do that and are unable to reach an arrangement with their employer can apply for the pandemic unemployment payment.

The main issue with the Sinn Féin proposal, while accepting the spirit in which it has been brought forward, is that it is not a targeted use of resources. For example, the fuel allowance has always been paid per household and not per individual, as suggested in this motion. If we were to accept the motion, there could be multiple fuel allowance payments going into the same house regardless of whether they are needed. The total cost of the proposal would be €227 million. Whether we like it or not, this would obviously have a knock-on impact on the ability of the Government to fund other critical programmes. Not one Sinn Féin Deputy has expressed any consideration of this.

For anyone who is expecting or experiencing genuine difficulty in heating their home, support is available through the supplementary welfare allowance scheme. My Department already provides targeted supports to people experiencing problems in heating their homes through this scheme, with over 2,000 payments made in 2020.

While I am aware that Sinn Féin mentions a €5 million fund, it is important to point out that the budget for the supplementary welfare scheme is not capped but is demand-led and is operated on a discretionary and flexible manner by community welfare officers. My Department actively promotes the availability of supplementary welfare allowance via its websites and social media channels, its network of Intreo offices, the citizens information services and MABS. That people know about the supplementary welfare allowance, and take it up as needed, is shown by the fact that we spend approximately €120 million on it each year. The scheme serves the purpose for which it was originally established by Frank Cluskey, which is to support people who are experiencing genuine hardship. In this way, it is targeted and provides support to those who most need it.

I believe the shared objective we have here today is to help people who do not have the wherewithal to cover extra fuel costs and to target resources at those who need them most. If individuals are experiencing genuine difficulties in heating their homes, I encourage Deputies to please direct them to my Department because we are here to help. I assure Deputies that my priority, and the fundamental objective of the Government, is to ensure that those most in need in our society are supported.

Any fair-minded analysis would find that the Government has not been found wanting in providing support to date. We only have to look at the Exchequer figures released yesterday to see that they show total spending by my Department is up 42%. I accept, however, that there will always be hard cases. I hear about them in my constituency office, and I do not doubt the sincerity of Deputies raising those cases today. My core message is that if people need additional support above and beyond what is already in place, I ask the Deputies to tell those people to contact my Department. Support is available through the supplementary welfare allowance scheme. I am sharing the rest of my time with Deputy Bruton.

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