Violet-Anne Wynne (Clare, Independent) | Oireachtas source

I wish to speak on the household benefits package, in particular the energy allowances aspect. As the Minister of State knows, the household benefits package is a set of allowances to help with the cost of living, specifically electricity or gas costs. The package is available to those aged 70 and over and to some aged under 70 in certain circumstances - those on disability allowance or carer's allowance who are living with the person they care for, to name but a few. The package is available to our most vulnerable citizens and that needs to be stated from the outset. We know that cold homes are associated with worsening health conditions and, sadly, with poor mental health. Our most vulnerable should never be left facing a choice between heating and eating. That is a society that we all wish to live in.

The electricity or gas allowance has a value of €1.15 per day and is payable monthly to the equivalent of €8.05 for per week. In 1968, the original electricity gas allowance came into effect and allowed for 100 free units every two months. It was then benchmarked to the number of units of electricity or gas consumed. Most important, the value of the payment rose in tandem with price changes. In 2008, the allowance covered 2,400 units per year which, unfortunately, was lowered to 1,800 units in 2011. Significantly, in 2013 the whole structure of the allowance was changed from a set number of units to a cash amount which, as I mentioned, only equated to €8.05 per week. At the time, it was argued that this approach would encourage people to switch energy provider, giving them bargaining power, for example. However, that does not account for the change in value to the person in receipt of the package.

The major disadvantage of decoupling the allowance from units is that during periods of price increases, the real value of the allowance is significantly reduced in terms of its purchasing power. This year, we have seen hyperinflation and many families have entered energy poverty, spending more than 10% of their income on their electricity bills. This is likely to continue and be further exacerbated by fossil fuels through the transition to a low-carbon economy.

I acknowledge, as I am sure the Minister of State will, the Government's extension of the fuel allowance to more people through the new threshold and the various cost-of-living payments over the past year. Obviously, any help and support for our most venerable is welcome. However, it was a small glimmer of hope in a black hole of despair of rising costs that seemed to be everywhere because they were affecting our most basic essentials. The electricity allowance of €8.05 per week has not increased in ten years and it is now worth 29% less than it was in 2013 due to the higher cost of electricity. Similarly, the gas allowance is worth 22% less than it was in 2013. It is a desperate state of affairs.

I cannot help but question how we got here and how it got this bad. Last year, Age Action Ireland put together an energy guarantee for older persons and I commend it on the great work done there. It proposed an energy guarantee for older persons which would be a cash payment but one which would be set against an objective benchmark in respect of units of energy. The aim should be to assist all recipients to obtain their basic need for adequate home heating with the exact amount of the payment to be calculated based on their household income and their homes' building energy rating, BER, housing type and fuel source. The value of the new cash payment should be indexed against market energy prices, so that if it rises or falls, the value of the payment continues to provide the same quantity of energy in kilowatt-hours so that everyone, people with disabilities, carers, etc., can always meet their basic home heating needs. On behalf of Age Action Ireland and the 500,000 households who are 30% worse off than they were under this payment ten years ago, I ask the Minister to consider this proposal for budget 2024.

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