Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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To ask the Minister for Social Protection if she will ensure that the number of heating units and the heating period be restored to their levels before she took office in view of the inclement weather and the impact of fuel poverty on the old and the poor and the fact that the top 1% of income recipients have a gross income of €8.742 billion per year and an average income of €404,000 each and an after-tax income of €249,000 each per year and that the saving on debt servicing due to the deal on the promissory note is €1 billion per year; and if she will make a statement on the matter. [11710/13]

Joan Burton (Dublin West, Labour)
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In 2013, my Department will spend an estimated €284 million on the household benefits scheme, providing 410,000 customers with a package worth almost €700 per year. We will spend approximately €176 million on electricity payments and almost €19 million on gas payments. In addition, 410,000 customers will receive a fuel allowance of €20 per week for 26 weeks at a cost of €211 million. We spend almost €500 million on weekly fuel payments for six months of the year, which I am sure the Deputy will agree is a significant amount of money.

Under the supplementary welfare allowance scheme, exceptional needs payments are made to people with a particular need and more than 3,000 customers are currently in receipt of a special heating supplement, paid to assist them with special heating needs, perhaps because of ill health or infirmity.

The provision for exceptional needs payments this year is €47.6 million, with an additional €11.4 million for supplements. All told, therefore, we are spending well over €500 million on heating payments.

The change to the electricity and gas elements of the household benefits package in budget 2013 will bring significant savings while aiming to enable customers to achieve better savings through greater mobility by switching suppliers. The cost of electricity and gas allowances has risen from €110 million in 2005 to an estimated outturn of €201 million in 2012, which is an increase of 83% over seven years. In the current economic climate these increases were unsustainable.

Additional information not given on the floor of the House.

The fuel allowance scheme was envisaged as a way of providing some additional support for those on long-term welfare payments during the winter season. Budget 2012 reduced the duration of the fuel allowance by six weeks from 32 weeks to 26, which is still half of the year and is covering the coldest months from October to April. The household benefits package is paid all year round.

It should be noted that Ireland’s older population has the lowest rate of consistent poverty - 1.9% compared with the whole population rate of 6.9% - and, as a group compared to the rest of the population, are least likely to be at risk of poverty. This points to the adequacy and importance of the State pension and other supports.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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There is significant fuel poverty in this country and it particularly affects the elderly, infirm and those with disabilities. Studies have shown that more than half of elderly people have cut back on food to try to keep their homes warm. About 60% of elderly people are worried about whether they can heat their homes properly in the autumn and winter. There are significant cutbacks in the heating supplement paid by community welfare officers, almost to the point of abolition compared to previous years.

Michael Kitt (Galway East, Fianna Fail)
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A question please, Deputy.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Today, every local authority in the country has been notified of savage cutbacks in the housing for older people grant scheme. That scheme was used to insulate homes, install windows and doors, and generally keep homes warm. Without borrowing another cent we could reverse these savage cuts to the heating and fuel schemes in recent budgets. The Government says it is saving €1 billion per year on the promissory notes deal. Last week, the Minister for Finance told me that the top 1% of income earners in this country earn €8.74 billion, which is an average of €404,000 each or an after-tax figure of €249,000. Yet we have no wealth tax or assets tax. The Minister would be well able to restore the cuts she introduced in the last two budgets on the basis of those two issues.

Joan Burton (Dublin West, Labour)
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I appreciate that Deputy Healy is talking to constituents who find the price of electricity and fuel difficult to afford. These prices have risen enormously in recent years internationally, so that is reflected in Irish prices as set by the regulator. Ireland's older population, however, has the lowest rate of consistent poverty, at 1.9% compared to the whole population rate of 6.9%. As a group compared to the rest of the population, the elderly are least likely to be in poverty for reasons I have explained to Deputy Ó Snodaigh. Our rate of social welfare payments to families with children, and also to our older citizens, is significantly in the higher end of the range across Europe. We have been able to maintain that despite the economic difficulties visited on us by the promissory note arrangement that was entered into by the last government, which was very costly for this State. It is greatly to our credit that we have been able to renegotiate this as the Labour Party suggested when we were in opposition.

We are now changing from a units-based to a cash credit arrangement on a monthly basis. Some 40% of electricity customers and 20% of gas customers in Ireland have switched supplier and as a consequence have got the benefit of various discounts. When it comes to customers on social welfare, however, only 16% have switched.

One thing I would like to do is where there are attractive offers that would reduce people's heating bills, they should be enabled to take advantage of such offers if they wish. The old system was not as flexible as the new system will be.

Michael Kitt (Galway East, Fianna Fail)
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Deputy Healy, briefly.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Elderly people have been targeted with significant and savage cutbacks in recent budgets. These various schemes pertaining to heating units, free fuel, mobility allowance, respite care grant and so on are the little things that made life bearable for elderly people. They are the very things that Margaret Thatcher targeted when she came to power in England and, unfortunately, it now appears as though the Government, the Department of Social Protection and its Minister are following in the footsteps of Thatcher in reducing these little things that make life bearable for elderly people. I ask the Minister to have some compassion. She has the money, as it is available from the promissory notes and from high earners.

Michael Kitt (Galway East, Fianna Fail)
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Thank you Deputy. I must call the Minister for her final reply.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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As she has the money, I ask her to please restore these benefits to elderly people.

Joan Burton (Dublin West, Labour)
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I have been determined and have succeeded in protecting the weekly pension payment and for those elderly people I know, that is the most important and significant part of their income. People speak to me as well as to the Deputy and-----

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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I am sure they do.

Joan Burton (Dublin West, Labour)
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-----the second point they make to me is that elderly people value in particular concessions such as the free travel allowance. Again, although the Government must make all its schemes as efficient and as cost-effective as possible, these nonetheless are highly important benefits to which the taxpayers contribute. Moreover, they are happy to see that our elderly people have one of the highest levels of payment in Europe and, therefore, in Ireland, the lowest risk of poverty.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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They also face the highest costs in Europe.

Joan Burton (Dublin West, Labour)
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Let me say to the Deputy-----

Michael Kitt (Galway East, Fianna Fail)
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In conclusion.

Joan Burton (Dublin West, Labour)
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-----that keeping intact the weekly social welfare payments of the pension and retirement payments was emphasised in all the submissions made to me. Second, in view of the more than €500 million the Government is spending on heating, I want to have a stronger system for insulating and retrofitting homes.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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It is being reduced today.

Joan Burton (Dublin West, Labour)
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My colleague, the Minister for Communications, Energy and Natural Resources, is working on this at present and fairly ambitious targets are being set.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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The grant in south Tipperary is being reduced from €3.1 million to €1 million.

Joan Burton (Dublin West, Labour)
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Construction-related work has become cheaper and the key point-----

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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South Tipperary's grant was reduced today from €3.1 million to €1 million. The scheme has been destroyed.

Michael Kitt (Galway East, Fianna Fail)
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Please Deputy.

Joan Burton (Dublin West, Labour)
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-----is to use the money to retrofit homes to avoid situations where, as the Deputy and I both are aware, in some cases smoke is going up the chimney and is heating the air above the house, not the house itself.