David Stanton (Cork East, Fine Gael)
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Question 1: To ask the Minister for Social and Family Affairs his views on and the actions he intends to take following the recent Society of St. Vincent de Paul statement that persons will be choosing whether to eat or heat their homes this winter; and if he will make a statement on the matter. [37456/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The Government's objective is to ensure that a social welfare recipient's total weekly income is sufficient to meet all their basic living needs, including food and heating costs. In recent years significant budget resources have been concentrated on providing real increases over and above inflation in all primary social welfare pension, benefit and assistance rates. This approach delivers a better outcome for pensioners and others by substantially increasing their income in real terms over the whole year, to better assist them in meeting their normal basic living costs, including heating.

Overall inflation, including food costs and fuel price increases, has amounted to 12.8% since January 2002. In the same period weekly social welfare rates incorporating fuel allowance have increased cumulatively by between 33% and37%. The household benefits allowances have also been increased fully in line with electricity and gas prices in the period and these are payable all year round to assist eligible pensioners, carers and disabled people with their heating costs.

Fuel allowances are supplements payable over the winter months to people in receipt of pensions and other qualifying social welfare schemes. Some 274,000 people receive this allowance at a cost of €85.4 million this year.

Increases in basic payment rates or in the rate or duration of the fuel allowance have significant cost implications. For example, an increase in basic rates of €1 per week would cost €52 million per annum. Increasing the fuel allowance by €1 per week would cost €8 million per annum. Increasing the duration of the fuel allowance by one week would cost just under €3 million per annum.

There is a broader issue of energy inefficiency, particularly in older private dwellings. Problems with poor insulation or inefficient heating systems in some houses can lead to discomfort and health problems, as well as being more wasteful of fuel costs.

Additional information not given on the floor of the House.

Obviously, I recognise that someone on a low income in a private dwelling has limited scope to spend money to correct structural energy inefficiencies in his or her house. As a start in addressing this issue, my Department is co-operating with the Department of the Environment, Heritage and local Government, Sustainable Energy Ireland and the Combat Poverty Agency in a pilot action research project in Cork and Donegal to improve heating systems and insulation in selected older private dwellings and to monitor the outcomes for the households in terms of improved cost-efficiency and comfort and health levels. This project is due to commence shortly and should be informative in formulating future policy on this issue, as well as being of more immediate direct benefit to the pilot households involved.

In the meantime, I am keeping the various social welfare programmes under close review to ensure that they assist towards heating needs as efficiently and effectively as possible within the budget resources available to me.

David Stanton (Cork East, Fine Gael)
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I thank the Minister for his reply. Is he saying that the Society of St. Vincent de Paul is mistaken and its view is wrong, that there is no hardship out there because of the increase in fuel costs, that everyone is all right, has plenty of heat and enough to eat, and that there is no problem? Is the Minister's response that the Society of St. Vincent de Paul is totally incorrect and older people are fine? Will he admit that there is a problem and there is an issue where the recent increase in fuel costs, of oil and gas in particular, is causing hardship to older people and, if so, what will he do about it?

Séamus Brennan (Dublin South, Fianna Fail)
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No, what I am saying is that there obviously is an issue here. The Society of St. Vincent de Paul does fantastic work on behalf of all of us. Its members are out and about meeting people and they know what they are talking about. I read carefully the society's pre-budget submission in which it made many strong points which, like all other submissions, will be taken into account in the budgetary context.

I stated in my reply that food costs and fuel price increases had amounted to 12.8% since January 2002 but in the same period social welfare rates, including fuel allowance rates, increased cumulatively by between 33% and37%. While the fuel allowance has not increased, the overall increases have far surpassed the costs involved. In the context of the forthcoming budget, the submission from the Society of St. Vincent de Paul will be taken fully into account.

David Stanton (Cork East, Fine Gael)
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I am confused. Is the Minister stating on the one hand that there is a problem and on the other hand that there is not a problem? He either agrees with the Society of St. Vincent de Paul that there is an issue out there that needs to be addressed or he is saying that the society's view is wrong? Will the Minister, in plain English, tell me which it is? Does he agree with the society and, if so, what will he do about it? Does he agree, for instance, that perhaps this process of increases only once a year does not take into account what can happens in between? Has he any evidence of hardship through sources other than the Society of St. Vincent de Paul?

I will repeat the question again to keep it simple for the Minister. Does he agree with the Society of St. Vincent de Paul that there is a problem and, if so, will he say so and say what he will do about it?

Séamus Brennan (Dublin South, Fianna Fail)
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Of course there is a problem, otherwise there would not be a Department like mine. There obviously is a problem and we are trying to address it in many ways. The submission from the Society of St. Vincent de Paul is excellent. It is professional and well researched. I received submissions from between 50 and 100 organisations about the budget.

David Stanton (Cork East, Fine Gael)
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This is about heating costs.

Séamus Brennan (Dublin South, Fianna Fail)
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Organisations make submissions on the budget as to what they would like to——

David Stanton (Cork East, Fine Gael)
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The Minister should address the heating costs.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Sorry, Deputy Stanton, we are running out of time.

Séamus Brennan (Dublin South, Fianna Fail)
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They make submissions as to their views on the setting of rates and how they would like to see the problem solved.

David Stanton (Cork East, Fine Gael)
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I asked about heating costs.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Deputy Stanton, allow the Minister to finish.

Séamus Brennan (Dublin South, Fianna Fail)
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Heating costs is an issue which has been addressed up to now by a 37% increase in welfare payments since 2002 and it can be further addressed in future Social Welfare Bills and in budgets.

David Stanton (Cork East, Fine Gael)
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There is no problem then.

Willie Penrose (Westmeath, Labour)
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Question 2: To ask the Minister for Social and Family Affairs if his attention has been drawn to the concerns expressed by the Society of St. Vincent de Paul that more than 600,000 Irish persons will be struggling to make ends meet and that thousands will fall into the clutches of moneylenders in Christmas 2005; the steps he intends to take to address the situation; and if he will make a statement on the matter. [37391/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I am aware of the concerns expressed recently by the Society of St. Vincent de Paul in its pre-budget submission. In view of the particular financial pressures experienced at this time of the year by persons and families in receipt of social welfare payments, I recently announced that a Christmas double payment will be made to more than 1.2 million welfare customers and their dependants. The payment, to be made this month, is a sign of commitment to social welfare recipients. It will be equivalent to 100% of the normal weekly payment and will cost almost €140 million.

My Department has a number of services available to assist individuals and families, primarily those on low income, to manage their finances and to open up affordable credit options. The money advice and budgeting service, MABS, which was originally established in 1992 on a pilot basis as an approach to combating the problem of illegal moneylending, operates nationwide through 52 local companies with the support of funding of €14 million from the Department. The service is designed to target families and individuals identified as having problems with debt and moneylending. Strong emphasis is placed on practical budget-based measures that will succeed in removing people permanently from dependence on moneylenders and open up alternative sources of low cost credit through the credit union movement. MABS management committees are drawn from local voluntary and statutory services and community groups and often include credit union representatives.

I am concerned that where severe hardship exists in cases of over-indebtedness, MABS customers receive the most appropriate assistance to deal with the situation. The 2005 budget allocation included a sum of €700,000 to establish a MABS helpline. Furthermore, one of the MABS companies is operating a pilot scheme together with a local credit union to help those who are borrowing from moneylenders, to access credit at a low interest rate.

Through its operation of the household budget scheme with An Post, the Department assists people who receive certain social welfare payments with money management by enabling them to pay a regular amount towards various household bills by direct deduction from their payments. This scheme is used mainly to cover local authority rents and mortgages and utilities.

Additional information not given on the floor of the House.

There is also provision under the supplementary allowance scheme through its exceptional needs payments, whereby persons may qualify for once-off payments from the Health Service Executive to help prevent undue hardship at times of exceptional expenditure.

Building a fair and inclusive society and helping the most vulnerable have been, and continue to be, key priorities of the Government. The Government's strategic approach to tackling poverty is set out in the national action plan against poverty and social exclusion. The Office for Social Inclusion, OSI, is preparing the third national action plan to cover the period 2006-08. This involves consultation with all relevant stakeholders, those who are experiencing poverty and social exclusion and those who work to support them, either directly or indirectly.

In my area of social welfare, spending has more than doubled, from €5.7 billion in 1997 to €12.25 billion in 2005, providing significant real increases in payments during this period. As a result, in the period 2001 to 2005 the lowest social welfare rates increased by 40% while the consumer price index increased by just over 13%. Child benefit rates increased by 65% over the same period, while from 2002 to 2005 pensioners received increases of €44.71 per week.

In drawing attention to these increases, I am not complacent about the current situation. Much more remains to be done to tackle the problems of poverty and exclusion, including those highlighted by the society. I am determined, therefore, through vigorous implementation and development of the strategic process, in full consultation with all the stakeholders at national, regional and local levels, to continue to build and improve on our achievements so far. I am also examining specific targeted measures that could be implemented to address areas of particular concern, including child poverty and pensioner poverty.

Willie Penrose (Westmeath, Labour)
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Is it not astonishing that despite the unprecedented level of economic resources available, when we have the opportunity to ensure that people are lifted out of poverty, that various reports reflect the fact we have failed to do so? We should accept that poverty is not inevitable and that if the political, economic and social structures were put in place, it could be arrested and reversed. Is it not disgraceful that in the most affluent economic climate and circumstances ever, more than 600,000 Irish people will struggle this month to make ends meet and that thousands more will fall into the clutches of moneylenders? That is a frightening statistic.

We see charges of up to 200%, even with the licensed moneylenders. With unlicensed moneylenders it is a case of whatever they can extract. Will the Minister now consider restoring the money, advice and budgeting service, MABS, supplement that was one of the savage 16 cuts unnecessarily and shamefully inflicted by his predecessor on the very vulnerable people who will now feel the heat? Will he agree that it is important to send out a clear message for people to keep away from moneylenders and warn that many people with no money to spend who feel pressurised to approach them should try to get some help through different sources?

In that context, why have the calls to just one organisation, the Society of St. Vincent de Paul, exceeded 300,000 in the current year, an increase of more than 10%? That is not a submission. It is empirical statistical data reflecting dire consequences for this country. Despite our successful economy we have a fractured society. Is that the legacy this Government will leave behind at the end of May 2007, if it lasts that long?

Séamus Brennan (Dublin South, Fianna Fail)
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On MABS, last year's budget gave a special allocation of €700,000, which was exactly the same amount that been removed earlier in one of the cuts referred to by the Deputy. I restored that funding but left it to the discretion of the MABS management as to where it fitted best. One must realise that since 1996, taxpayer spending on this area has doubled. It has moved from €5.7 billion up to €12.2 billion in just a few of years. Child benefit, for example, has increased by 65% over the same period. Therefore, there have been substantial increases with taxpayer funding going into it.

The Deputy has probably heard me say a thousand times that a third of all Government spending is accounted for by this area. That is not to say that I am complacent, however. I take the point made by the Society of St. Vincent de Paul and the Deputies opposite. There are real social issues in society still to be dealt with and people are still struggling.

I do not see that figure of 300,000 in the Society of St. Vincent de Paul submission unless somebody can point it out to me. It is a figure that I saw in the newspapers, but I do not see it in the report and it is not in the chairman's foreword. I would not like that figure to take hold before we can confirm the statistics in this area. Deputies have also heard me talk many times, and there is some degree of agreement in the House on this, about the frustration caused by different poverty measurements. We have made massive strides but we cannot afford to be complacent. That is why the increases will continue.

Seán Crowe (Dublin South West, Sinn Fein)
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Question 3: To ask the Minister for Social and Family Affairs if he will consider extending the Christmas bonus to all those in receipt of short-term disability in excess of six months; and if he will give a costing for this. [37483/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The Christmas bonus payment was first introduced in December 1980 for social welfare pensioners and people who depend solely on their social welfare payments for income support. There have been a number of developments in this initiative since its inception, including changes in the level of the bonus payment which has been at the rate of 100% over the past six years, the introduction of a minimum payment and the extension of the categories of eligible claimants.

The focus of the bonus has always been on assisting people who rely on the social welfare system for financial support over the longer term. These include recipients of retirement, old age — contributory and non-contributory — widow's, widower's and invalidity pensions, one-parent family payment, carer's allowance, disability allowance, long-term unemployment assistance, farm assist and people on employment support payments, for example, the back to work allowance.

The bonus is also payable to certain participants on FÁS, vocational training opportunities, job incentive and community employment schemes and to those in receipt of payment under the rural social scheme which was introduced in 2004 and operates under the aegis of my colleague the Minister for Community, Rural and Gaeltacht Affairs.

The Christmas bonus payment will benefit more than 1.22 million people this year, comprising some 835,000 social welfare recipients and their 384,000 dependants. Payment of the bonus is estimated to cost almost €140 million in 2005 and payment is being made to recipients of the relevant long-term schemes this week. Of the 64,000 persons in receipt of disability or injury benefit, almost 42,400 obtain those payments for six months or longer. It is estimated that extending the bonus to those people would cost in the region of €6.75 million.

The extension of the bonus to any one category of short-term payment would inevitably lead to pressure to extend it to all other short-term payment schemes. Consequently, the implications of any amendment to the Christmas bonus must be considered in the context of competing demands for available resources.

Seán Crowe (Dublin South West, Sinn Fein)
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I take it that the Minister is saying in his reply that he will not consider paying it to people in receipt of disability benefit for more than six months. The question was about whether the Minister would consider making the payment. It is a short-term measure but some of the people who avail of this benefit could be on it for up to two years or longer. It is called short-term but it is not really that. My suggestion in the question was about anyone on it for more than six months. That is a long time for a single person to survive on benefit of €140.80 a week with possibly an extra €100 for a married person or spouse. There is difficulty involved, especially at Christmas time. I understand it is a matter of finances but perhaps the Minister should examine this issue, even if it is too late for this year. The way the system rolls out at the moment is unfair. To be on that benefit for six months is a long time. We all know poverty is incremental and so on and the hardship involved.

I presume when this scheme was originally implemented it was on the basis that the Department did not want people going on sick benefit prior to Christmas or whatever. However, if someone is on it for six months, he or she is genuinely sick. The Minister will appreciate that if someone is sick for that length of time, all types of extra costs are involved. That was the reason for the question. I suppose it is the difference between being Santa or Scrooge coming up to Christmas. An opportunity exists and it should be put right. I do not know whether this may be done in the light of the Minister's current budget proposals, but if he cannot do something this year, perhaps he could consider it for next year.

Séamus Brennan (Dublin South, Fianna Fail)
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As I said, some 834,000 people already get the bonus. The distinction was made many years ago between long-term and short-term recipients. It was decided that long-term people would get the bonus and short-term people would not. The Deputy is quite right in that disability benefit is a short-term scheme. However, there can be an anomaly in that many people can be on a short-term scheme for a long time. I take that point. The proposal the Deputy has in mind is six months, equivalent to 42,400 people, which would cost €6.75 million. If one could ring-fence that, I would be interested in looking at it. One must be careful in pulling the thread of short-term schemes, however, because it could open them to another 200,000 people if all were to be included. That would involve a bill for €31 million for which there is no particular demand at present. I acknowledge that it is a short-term scheme and some people can be on it for a year or two. They have the option of moving to an invalidity pension after one year. If they receive that pension, they will get the bonus. The option exists but they must pass a medical test to avail of it. Many people who are on benefit for 12 months transfer to the invalidity pension and they then get the bonus. There is an issue there which I will continue to study.