Bríd Smith (Dublin South Central, People Before Profit Alliance)
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51. To ask the Minister for Employment Affairs and Social Protection if a review of the levels of energy poverty in the general population will be commenced; the number of applicants for the fuel allowance that were unsuccessful and refused in 2017, 2018 and to date in 2019; the reason for the refusals; and if she will make a statement on the matter. [43637/19]

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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My question has two parts. First, I ask the Minister if it is intended to conduct a review on the levels of energy poverty in the general population, and whether that will be commenced. Second, I ask her the number of unsuccessful applicants who were refused fuel allowance in 2017, 2018, and to date in 2019, the reasons for the refusals, and if she will make a statement on the matter.

Regina Doherty (Meath East, Fine Gael)
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In 2016, the Department of Communications, Climate Action and Environment commissioned a review of the level of fuel poverty in Ireland. That study estimated that 28% of households were living in fuel poverty because they spent more than 10% of their income on fuel costs. A study by the Economic and Social Research Institute, ESRI, which utilised the same methodology, was published in June of this year and it estimated that the rate currently stands at 17.4%. The Department of Communications, Climate Action and Environment is also currently participating in a project led by the Central Statistics Office, CSO, to establish indicators for energy poverty, which should allow for a more reliable analysis of households with low incomes and a low BER rating. This will facilitate better targeting of supports and better measurement of the impacts of those supports in addressing energy poverty. It is expected that the CSO will begin to publish reports from this project in early 2020.

Budget 2020 also included an allocation of €52.8 million for the warmer homes scheme, which funds retrofits for those living in energy poverty. This represents the biggest ever allocation for this scheme and is more than double the initial allocation for 2019.

My Department increased the fuel allowance payment by €2 to €24.50 per week. This will increase the annual amount from €630 to €686, which is a €56 yearly increase with a total cost to the Exchequer of €21 million. This will be funded by a ring-fenced allocation from the circa €90 million that is expected to be raised from the carbon tax increase. This is the largest allocation in the budget and is directly aimed at protecting our most vulnerable citizens. In 2017, the number of fuel allowance claims disallowed was 21,182. In 2018, it was 22,023. So far to date in 2019, it is 15,014.

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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I ask the Minister to come back to me regarding the reasons for the refusals. A number of issues jump out in her reply. Measuring fuel poverty is difficult and how it is done is not satisfactory. I met pensioners yesterday who were former semi-State workers with RTÉ and the ESB. They cannot afford to keep their houses warm due to the pension levy applied to their pensions and because there has been absolutely no increase in those pensions since 2008. This is a separate subject but it is an indicator that the rate of fuel poverty goes beyond the measurements used by the State or the ESRI. The money spent on retrofitting is paltry to say the least. Given that we have a climate emergency, €52.8 million is paltry and the increase of €2 will barely cover the increase in carbon taxes these people will face in travel and other expenses in heating their homes. It is like someone splitting their head and being given a plaster. I ask the Minister to comment on that and tell me exactly how she is going to proceed.

Regina Doherty (Meath East, Fine Gael)
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I will finish my earlier reply. The scheme conditions include only one fuel allowance per household; satisfying a means test; and satisfying the household composition test. We do not have a breakdown of exactly why people are refused, but it is for one of those three reasons. Someone will not receive the payment if he or she does not satisfy the means test or if there is a fuel allowance payment already going to the household. The composition of the household used to be a reason for refusal as well. However, we have changed the household benefits package for single adult pensioners who have another adult living with them. That will be changed in this budget.

In fairness, the Government is doing much do deal with energy poverty. We are committed to protecting vulnerable households from the impact of energy costs. I do not agree with the Deputy's statement regarding carbon taxes. The increase of €56 in the fuel allowance this year will more than compensate for the €45 increase in costs to households on the three lowest deciles. We will address people experiencing fuel poverty in a variety of ways over the next number of years, both collectively as a society and as part of Government policy.

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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I completely disagree with the Minister that the increase in fuel allowance will compensate people for the increases in carbon taxes. That is another story, about which we argue in the climate committee all the time. However, it is clear that the way in which the fuel allowance is allocated works against some people who are stuck for cash. Elderly or unwell couples come to me, as I am sure they come to other Deputies, who are €2 or €3 per week over the threshold for fuel allowance. That allowance would allow them to apply for schemes to retrofit their homes, get their attics lagged, or get their windows changed, but not having it compounds fuel poverty and drives it even deeper. We need to look at a wider cohort of the population that falls a little bit above the bracket determined by the Department, the ESRI, and others who do not understand what it is like to live with fuel poverty.

Regina Doherty (Meath East, Fine Gael)
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Last year, a number of people made applications for fuel allowance who were only a few euro above the threshold. I find it difficult that we stop such people from getting €22.50 a week because they are €2 or €5 a week over the scheme limit. I looked into perhaps knocking that €5 off and giving them €17.50, or finding some other way to address what I felt was an anomaly. Unfortunately, when one gets down to brass tacks, there has to be a cut-off point somewhere. Moving that cut-off point will only create a new cut-off point, which will not fix the problem because there will always be people outside of it. I appreciate that something needs to be done, such as perhaps introducing a sliding scale. It would be valuable if we did something along those lines this year.