Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 28: To ask the Minister for Social Protection if she is concerned that many older persons will be refused fuel allowance as a consequence of the raising of the pension age in view of the high number of avoidable deaths caused by the cold each year. [15458/11]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

The challenges facing the Irish pension system are significant. The population share of those aged 65 and over is expected to more than double between now and 2050, from 11% to 26%. People are living longer and healthier lives with average life expectancy set to rise even further in the future, up to 88 years for women and 83.9 for men. In contrast, the share of the working age population is projected to decline gradually from 68% to 58%. There are currently six people of working age for every pensioner and this ratio is expected to decrease to less than two to one by 2050. Therefore, the task of financing increasing pension spending will fall to a diminishing share of the population who are at work. Spending on public pensions, that is social welfare pensions and public service occupational pensions, is projected to increase from approximately 5.5% of GDP in 2008, to almost 15% by 2050. For these reasons, State pension age will be increased gradually to 68 years. This will begin in 2014 with the standardisation of State pension age at 66. The State pension age will be increased to 67 years in 2021 and to 68 in 2028. It is worth noting that until the early 1970s, the qualifying age for the State pension was 70 years. The legislative changes being included in the Social Welfare and Pensions Bill 2011 also fulfil one of the commitments in the EU-IMF programme of financial support for Ireland.

Additional information not given on the floor of the House.

The risk of fuel poverty is based on a combination of fuel price, income and efficiency of housing. My Department assists low-income households with heating costs through their basic payments and through the means-tested fuel allowance scheme. This scheme has been improved significantly in recent years, including through an extension in the number of weeks paid and increases in the rate. Fuel allowance is paid to people who are dependent on long-term social welfare and unable to provide for their own heating needs.

People affected by the increase in pension age who are not in employment may still qualify for the fuel allowance if they are in receipt of another qualifying social welfare payment, such as disability allowance. Under the supplementary welfare allowance scheme, a special heating supplement may be paid to assist people in certain circumstances who have special heating needs because of ill health or infirmity. In addition, exceptional needs payments may be made to help meet an essential, once-off cost that an applicant is unable to meet out of his or her own resources.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

My question concerns the fuel allowance and the consequences of the change. Given the changes signalled in the social welfare legislation before the House, a certain category of individuals will be affected from 2014 onwards. I am concerned that people whose contracts will finish when they are 65 will not be entitled to a fuel allowance. Is there any intention to ensure that those who finish at the age of 65 will be able to qualify for the fuel allowance as it currently exists? If their contracts finish when they are 65, they might be entitled to jobseeker's benefit or jobseeker's allowance but not to the fuel allowance because they will not have been on a jobseeker's allowance for a long-term basis at that stage, especially bearing in mind that the State pension age will be increased from 67 to 68 in 2028.

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

The most important objective pertaining to older people and fuel property is to provide a much better standard of insulation for homes, both to reduce and prevent heat loss and to improve the comfort and standard of housing. As we know, many older people live in older properties. The inter-departmental-agency group has been asked to draw up an energy-affordability strategy. This strategy will set out existing and future approaches to addressing energy affordability and will have regard to both the impact of the carbon tax on low-income households and a range of supports in making its recommendations.

The group has been asked to make recommendations as to the precise package of measures, including the area of income support, that should be put in place to assist those at risk of fuel poverty. These recommendations will be considered as part of the overall strategy to deal with energy affordability, which will include supports for low-income households. As the Deputy knows, the fuel allowance is not the sole income support mechanism through which assistance is provided to people with special heating needs.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

The Minister is saying no account is taken at this stage of the effects of the change to the fuel allowance provided for in the social welfare legislation being taken today. As of 2014, those who are 65 will not be entitled to a fuel allowance until they are 66. After 2021, the age of entitlement will be 67. Am I correct in stating one cannot qualify for a fuel allowance until one is on long-term jobseeker's allowance?

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

I said we need to examine this holistically. The critical issue for many who are dependent on the fuel allowance is to improve heat retention in their houses. I refer to problems such as dampness. The inter-departmental-agency group is drawing up an energy-affordability strategy. The heating allowance, while incredibly important to people, is not the only provision we should be examining. We should also be seeking to really improve the quality of insulation in houses.

As the Deputy is aware in respect of the jobs initiative, my colleague, the Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, has introduced a scheme that will provide for insulation. I and many Deputies in the House would like to see emphasis on reducing energy loss and heat loss and on improving insulation. This is probably more important than the issue of the heating allowance.