Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Question 6: To ask the Minister for Social and Family Affairs the position in regard to the promised review of his decision to withdraw the €9 per week fuel allowance that was previously paid to pensioners living in sheltered housing in inner city Dublin; if he will reverse the decision in view of the relatively small amounts involved and the potential hardship for persons who will lose out; and if he will make a statement on the matter. [37218/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The aim of the national fuel scheme is to assist householders who are in receipt of long-term social welfare or Health Service Executive payments with the cost of their additional heating needs during the winter season. Fuel allowances are paid for 29 weeks from the end of September to mid-April. A total of 274,000 customers benefit under the scheme at a cost of €85.4 million this year.

As a long-standing policy within the scheme, fuel allowances have not been payable in situations where a person has access to their own fuel supply or is benefiting from a subsidised or low-cost heating service, such as those provided by Dublin City Council at a number of its housing complexes. Local authority tenants who benefit from communal heating arrangements make a fixed contribution towards the cost of heating their homes, typically approximately €6 per week.

Unlike other tenants and social welfare customers generally, who must buy their own fuel at prevailing retail costs, these tenants are protected from increases in heating costs. The true cost of heating their homes is subsidised by Dublin City Council and the other local authorities concerned.

In the course of a routine review of fuel allowance payments, my Department recently ceased allowances which had been paid in error in a specific number of cases where the recipients were in or had moved to local authority accommodation with subsidised or low-cost heating. The allowances in question, which under current scheme rules should not have been put in payment in the first place, were withdrawn in these cases with effect from the start of this winter heating season. My Department did not seek to recover the money which had been paid in error.

In addition to the fuel allowance, eligible persons qualify for electricity or gas allowances though the household benefits package payable throughout the year. As currently structured, these allowances are linked to unit energy consumption, so people are protected against unit price increases. There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances with special heating needs.

I am reviewing the position regarding fuel allowances. In view of the cost implications, any changes must be considered in the context of the forthcoming budget.

Willie Penrose (Westmeath, Labour)
Link to this: Individually | In context

The fuel issue is the most serious to be faced by the Minister in the budget. A failure on his part to substantially increase the fuel allowance, rather than merely tinkering at its edges, will leave him with a regrettable legacy. All Members know that fuel poverty is one of the biggest issues facing our elderly, particularly given the escalating price of fuel. I refer to the absolutely scandalous increases in oil, electricity and gas prices that must be borne by people, particularly by the elderly. How did the Minister's Inspector Clouseaus manage to find the 237 people who were living in such accommodation in Dublin and the south east? Does the Minister realise that savings of only €1,500 per week are being made in consequence? Moreover, such people pay €6 per week towards their fuel, regardless of whether they use it. They pay €6 for 52 weeks of the year, which comes to €312 per year. However, the Minister's Department only gives them some €260 per annum. Hence, the Minister has caused them to be a great deal worse off.

This is the season of Advent and earlier today, I observed the lighting of the Leinster House Christmas trees. The few miserable shillings taken from the people affected would not pay for the electricity used to light the Christmas trees around the Houses today.

Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

Hear, hear.

Willie Penrose (Westmeath, Labour)
Link to this: Individually | In context

In the spirit of the season, can this scheme be restored? There should be no more obfuscation, foot-dragging, or side-stepping of a type that would have served Jimmy Keaveney well at his peak. Those 237 people should have the fuel allowances that were taken from them returned. More importantly, Members should make sure that the increase in fuel allowance in the forthcoming budget is sufficient to ensure no one dies of fuel poverty.

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

As I have mentioned, 237 people were affected. I have already informed the House that I have instructed the Department to examine precisely what happened in this regard. I propose to make a decision on the matter in the near future. As I stated, the matter arose through an error. That said, the fuel allowance was never intended for people whose fuel was paid for in the first place. Such people do not have the same requirement to buy fuel as would someone else whose fuel is not paid for. It is important to note that the fuel of the 237 people affected is paid for by the local authority. Even though their fuel is paid for separately, I have been asked to extend the fuel allowance to them. Because of the nature and manner of what happened, as well as the limited numbers involved, I am disposed to resolve the matter. I intend to do so in the near future.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

What is the cut-off point for a low-cost heating service? When does it cease to be a low-cost heating service, that is, what is the threshold above which people are charged for the service? The Minister stated he was engaged in a review of fuel allowances. When did the review start and when does he expect it to be completed?

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The allowance is means tested. It applies to a number of schemes, including the old age contributory and non-contributory pensions, widows' pensions, lone parents' allowances, allowances for the blind and so on. It covers a range of schemes and as I noted, some 274,000 people are in receipt of it. It is means tested. I will establish the precise cut-off figure for the Deputy. However, as it is not a particularly significant payment, it is not particularly difficult to get.

As for the review, I will examine the issue in the context of the budget. I will take the statements made by the Society of St. Vincent de Paul and other organisations, as well as those made in the House, into consideration. Successive Ministers before me took the view that it was better to increase the main rate of social welfare benefit. Consequently, they decided it was better to direct available funds towards increasing the main rates, so that people had access to the money. This explains why there have been fairly major increases across the board in recent years, as far as the main benefits are concerned. However, this was carried out at the expense of a range of ancillary schemes, such as the fuel allowance. That is why the fuel allowance, the child dependant allowance and many other so-called non-main rate allowances were not increased over the years. I am considering whether this policy is still wise and I will conclude my thinking in this regard in advance of the budget.

Dan Boyle (Cork South Central, Green Party)
Link to this: Individually | In context

Is the Minister aware of the rules regarding the provision of heating in local authority housing? The local authority decides the time of year when heating is available and the times of the day at which it is switched on. As we are likely to have the coldest winter in decades, is the decision to withdraw the fuel allowance from the people in question not foolhardy as well as mean? There needs to be co-ordination between the Department and local authorities regarding how they provide heat.

Seán Crowe (Dublin South West, Sinn Fein)
Link to this: Individually | In context

Would it not make more sense economically to give a lump sum to fuel allowance recipients rather than a weekly allowance? As the Minister knows, it is cheaper if one buys in bulk. It is cheaper to buy coal once per year than to buy a bag per week. I suggest that the Minister consider this in his review and it would not cost him anything.

Finian McGrath (Dublin North Central, Independent)
Link to this: Individually | In context

In view of the overall debate on cutting the fuel allowance of €9 per week, does the Minister find it unacceptable that, in this very wealthy country, there are still people, particularly the elderly, living in the conditions that have been described? In his review of the scheme, will he listen to the advice of groups such as the Society of St. Vincent de Paul, which are on the front line dealing with people in poverty and looking after the elderly?

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

I believe in listening to such groups. I met 35 or more of them in the past year and my officials and I spent an hour or more with each. I have offered each one a second meeting, if it wishes to attend. I am fully available around the clock to talk to the groups and to politicians. As I have said many times, politicians have a special knowledge of this subject because of the clinics they hold every week. They listen to people and hear their stories at first hand. I listen very carefully and the budget will reflect that I have been listening to the groups in question.

I heard what Deputy Crowe said on the need for an annual payment. The logistics are such that it is easier to make the fuel allowance available with other payments. However, I will give some thought to what the Deputy said.

Dan Boyle (Cork South Central, Green Party)
Link to this: Individually | In context

What about heating in local authority housing?

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

We should, and do, co-ordinate with local authorities. We have been in touch with Dublin City Council on the subject in question because we need to have joined-up administration. The aforementioned 237 people, in particular, have been dealing with me in regard to the fuel allowances and with the council in regard to their present heating arrangements.

Willie Penrose (Westmeath, Labour)
Link to this: Individually | In context

Will the Minister assure us that the problem will be remedied before Christmas?