Joe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

I thank Deputies for an engaging discussion on the very important issue of fuel poverty. As outlined by my colleague, the Minister for Social Protection, Deputy Humphreys, we want to ensure that we provide the types of supports which offer help to the people who need it most. We want to avoid the use of untargeted measures which do not sufficiently prioritise and target those most in need of the relevant supports to ensure that expenditure on such measures provides the maximum benefit to those in specific need.

To date we have spent more than €10 billion on Covid-19-related income transfers, including in excess of €5.5 billion on the PUP scheme to more than 820,000 individuals and about the same again in payments in respect of wage subsidy schemes to in excess of 440,000 people. It is important to reiterate the findings of recent ESRI research which showed that the PUP and the temporary wage subsidy scheme, TWSS, have been effective in cushioning families at the lower end of the income distribution table from losses and have largely absorbed the impact of income losses for the bottom 40%. The Government has extended the PUP and the wage subsidy schemes until the end of March 2021 and will continue to monitor the position, ensuring that these schemes will remain in place as long as is necessary.

The Government is committed to supporting those on low incomes with their home heating costs through the fuel allowance scheme and other supports. Just four weeks ago on 4 January, the most recent increase to the fuel allowance payment took effect. The increase of €3.50 per week took the weekly payment to €28, the highest weekly rate ever for the fuel allowance, meaning that each qualifying household will receive €784 over the course of a year. This season more than 372,000 households will be supported with this allowance at a cost of more than €300 million. In 2020, taking account of the prevailing weather conditions and the Covid-19 crisis, the fuel allowance season was extended by four weeks to support qualifying households further. The current season is due to end on 9 April, but as in previous years, the Government will consider extending the season if prevailing economic and-or weather conditions necessitate it. An estimated 465,000 households receive support with their electricity and gas bills through the household benefits package throughout the full year at a cost of €265 million annually. The household benefits package is specifically targeted at those who are 70 years old and over and is a non-means-tested payment.

In budget 2021 the Government committed that one third of increased carbon tax revenues would go towards boosting the incomes of the poorest in society. There have been some incorrect comments made on this today and I want to make clear that specific targeted increases in social welfare payments, outlined by the ESRI, were implemented with a view to ensuring that the poorest in society would not be hit by increases in carbon tax. It is the case that those who are worst off are benefiting financially from the transfer of carbon tax increases to social welfare payments. The ESRI identified three key payments from the Department of Social Protection which could help to channel carbon tax revenues towards those most in need, namely, the fuel allowance, the living alone allowance and the qualified child allowance. These measures are ensuring that the carbon tax is working as an anti-poverty tool for those most in need. That might not be popular but that is the reality. From January the living alone allowance has been increased by €5 to €19 per week at a cost of €57.5 million, providing critical additional targeted support to more than 220,000 customers who live alone. Also from January this year, qualified child allowance payments have been increased by €2 per week, from €36 to €38, for children under 12 and by €5, from €40 to €45, for children aged 12 and over. It is estimated that this will benefit 419,000 children who are most in need.

In addition to the support schemes I have mentioned, the Government provides targeted supports to people facing exceptional costs or experiencing financial difficulties through the supplementary welfare allowance scheme. Payments are made under this scheme in respect of exceptional heating costs, and in excess of 2,000 such payments were made in 2020. It is important to reiterate that the budget for the supplementary welfare allowance scheme is not capped and is operated in a discretionary and flexible manner by community welfare officers who can judge each case based on individual need. Schemes such as the supplementary welfare allowance facilitate specific targeting to ensure that resources are available to those most in need. The Department actively promotes the availability of supplementary welfare allowance payments via its web and social media channels, Intreo centres, citizens information centres and Money Advice and Budgeting Service, MABS, offices. I would respectfully ask all Deputies and those listening to this debate to spread the word about the availability of the supplementary welfare allowance if they really want to support people who are having difficulties covering their fuel costs.

I have highlighted the range of other income supports by way of acknowledging that fuel poverty is not a stand-alone issue but rather a manifestation of income poverty. Thus, it is important to look holistically at the range of supports available to households to try to alleviate poverty in all of its forms. However, the focus at all times must be on tackling one of the root causes of fuel poverty, and it is imperative to acknowledge that if we are to achieve long-term sustainable reductions in household energy costs, we must improve the structural insulation issues impacting on the cost of heating homes to tackle fuel poverty in a meaningful way. This is why one of the Government's key commitments is to support the retrofitting of Ireland's housing stock, which ultimately reduces fuel and heating costs and is better for the environment in the long run. In line with programme for Government commitments, this year will see the largest budget for retrofitting in the history of the State. Our emphasis is on cutting energy costs over the medium to long term so that in the future there will be less need for reliance on short-term measures such as the fuel allowance. Our prioritising of retrofitting as a means of tackling fuel poverty is clear from the 82% increase in the budget available this year to the SEAI, with a total budget of €221 million in 2021.

Deputy Barry mentioned a figure of €40 million for the warmer homes scheme but that is not correct. The budget for this year is almost triple that, at €109 million. The warmer homes scheme is being ramped up very significantly this year. The scheme supports those on lower incomes to retrofit their homes to reduce their energy bills sustainably and permanently. In addition, through the Department of Housing, Local Government and Heritage, we have committed funding of €65 million in 2021 to support the retrofitting of up to 2,400 social housing homes. Providing funding for these types of initiatives is critical to ensuring that we reduce fuel poverty in the long term.

I also think it is an opportune time to mention a relevant initiative supported by the Minister's other Department, the Department of Rural and Community Development, which is of particular relevance to today's topic. I refer to the Community Call initiative. This was set up at the beginning of the pandemic last year as a collaboration between State agencies and the community and voluntary sector to ensure the most vulnerable and isolated got the support they needed. In every local authority area, there is a Community Call helpline which helps to connect people with local groups that can help with the collection and delivery of essential items, including fuel, for people who are particularly vulnerable and isolated. It also assists people who are feeling socially isolated or medically vulnerable. I mention this initiative because there may be people who are not accessing the fuel they need or, indeed, the payments they need due to difficulties caused by the pandemic or the associated restrictions. Again I say it is important that we, as public representatives, are aware of these helplines and that contributing organisations are still very much available for those who need them. Some of the earlier examples cited today with regard to isolated older people and, in particular, those living alone do not really recognise this aspect of poverty or the reality and complexity of poverty.

I acknowledge Deputy Whitmore's mention of a just transition. Other Deputies also mentioned it. This will be a key principle informing the work of the Department. I want to acknowledge that. It is incumbent on us all to work together to provide the necessary supports to those in our society who need them. In that spirit, I reiterate my request to all Deputies to promote the availability of the supplementary welfare allowance. There are 63 Intreo offices open across the country for people who are in financial need at this difficult time.

I want to pick up on a couple of other points. Deputy Sherlock asked about the two fuel allowance seasons and suggested the allowance was lower this year. He is comparing apples with oranges because this fuel season is not yet complete. Last year's was exceptionally long and this one may also be long. That is the difference; this fuel season is not yet complete. Deputy Tóibín mentioned the capacity of microgeneration to reduce fuel costs. He is absolutely correct. I am glad to announce that a public consultation on microgeneration is ongoing. The area has great capacity.

I acknowledge the passion for rural Ireland shown by Deputies Nolan, Fitzmaurice and Danny Healy-Rae. I only have 30 seconds and I need to say a couple of other things. I have heard the Deputies and we are listening to them. It might surprise them to learn that we are more approachable than they might think. I am of rural Ireland myself. I know they need to make some points today but I ask them also to talk to us. We are amenable and we understand the issues about which they are talking.

The Minister, Deputy Humphreys, highlighted earlier the range of supports provided by the Department, which is working to alleviate poverty for those most in need and doing so in a targeted way to ensure supports are provided where they are most needed. The Government is committed to ensuring this remains the case. The Minister has committed to meeting the NGOs to which reference was made today with regard to their concerns about fuel poverty. I thank Deputies for their engagement this morning. It is important that we ensure these vital targeted supports are in place for those who most need them and, accordingly, I commend the Government's amendment to the House.

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