Dáil debates
Thursday, 14 July 2022
Ceisteanna Eile - Other Questions
Cost of Living Issues
11:20 am
Ruairi Ó Murchú (Louth, Sinn Fein)
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85. To ask the Minister for Employment Affairs and Social Protection the actions that she will take to urgently address spiralling coal costs to support families facing huge pressures taking into consideration the recently published report by an organisation (details supplied); and if she will make a statement on the matter. [34886/22]
Ruairi Ó Murchú (Louth, Sinn Fein)
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There will be repetition with many of these questions. A large number of people are under severe pressure whether it is because of the cost of home heating oil, solid fuel or the spike in electricity prices. They will need some detail soon. We cannot wait until the day before the budget to find out what necessary mitigations are proposed for the conditions we have now.
Joe O'Brien (Dublin Fingal, Green Party)
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The Deputy's original question also referred to the ESRI report on fuel poverty so I will refer to that. The report explores the issue of energy poverty and deprivation in Ireland. The Government recognises the pressures families are under in respect of energy prices and have taken a range of steps, including targeted and universal measures.
As part of budget 2022, a number of expansions to the eligibility criteria for the fuel allowance payment were announced at that time. The weekly means threshold for the fuel allowance scheme was increased to €120 above the appropriate rate of contributory State pension. With effect from the start of the next fuel season, the qualifying period for jobseeker's and supplementary welfare allowance recipients to access the fuel allowance payment will be reduced from 15 to 12 months. The rate of the fuel allowance was also increased by €5 a week with immediate effect.
As part of the Government measures to help mitigate the effects of rising energy costs, additional lump sum payments of €125 and €100, equivalent to almost seven weeks additional fuel allowance, were paid to all households in receipt of the fuel allowance payment in March and May. This means that low-income households saw an overall increase of 55% in fuel allowance support provided during the fuel allowance season. When taken in conjunction with the electricity costs emergency benefit payment, paid in April, these households received over €600 in additional targeted Government supports over the course of the 2021 to 2022 fuel season.
The Government has reacted quickly not only with social protection measures but also having implemented a wide range of initiatives covering tax, energy credits, excise and transport measures. The Department also supports people through additional needs payments and through a special heating supplement under the supplementary welfare allowance scheme. All of these measures will be kept under review, together with trends in prices, to inform preparations for the budget later this year.
Ruairi Ó Murchú (Louth, Sinn Fein)
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Specific mitigations will need to be introduced. We all hear this in our constituency offices and I have no doubt that the Minister of State does too. People are under incredible pressure. We are dealing with a 38-year high in inflation at 9.1% in June. It has also been the fastest increase. It is incredibly difficult to deal with. People have problems with their bills and in my part of the world, a large number of people rely on solid fuels and home heating oil. We need these measures to be put in place as soon as possible. We will have to get some sort of indication of what will be proposed in the budget.
Joe O'Brien (Dublin Fingal, Green Party)
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I am not in a position to give the Deputy an indication of what might be proposed in the budget.
Ruairi Ó Murchú (Louth, Sinn Fein)
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We could keep it to ourselves.
Joe O'Brien (Dublin Fingal, Green Party)
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The short-term measure, as I said earlier, is the additional needs payments. The community welfare officers have been given direction on what is viable to cover in respect of people's costs, and energy costs are certainly part of that. The medium-term intervention is the budget. It was been clearly flagged at an early stage that it will be a cost-of-living budget. All Departments have been asked to examine how they can assist in that; it is not only our Department, although we will have a key role. On the longer-term, we do not want to be here in three, four or five years still talking about the same people who need more increases to fuel allowance. The long-term plan, which has started, is the national retrofitting plan. It is gearing up and we have committed to investing a significant amount in that in the coming years.
Ruairi Ó Murchú (Louth, Sinn Fein)
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A great deal needs to be done in the budget. It remains to be seen whether it will be but the pressure is on the Government. There is no doubt that people are under significant pressure. I agree with what the Minister of State has said about retrofitting. I would be delighted if people had alternatives that were not only environmentally better but also cheaper. We need to make sure that the schemes we have are changed slightly so that they become more targeted. I understand that does not fall under the Minister of State's remit necessarily.
The additional needs payment needs to be examined. There are still cases where it is incredibly difficult. Sometimes there are anomalous scenarios where people are under pressure but they cannot necessarily get the payment. I call for the household benefits package to be re-examined. Sometimes people do not have a gas point reference number, GPRN, when they are using a communal heating system. I am thinking of places such as Carlinn Hall where there is still major issues with the cost of the bills. It might be necessary to change the facility under the household benefits package.
Joe O'Brien (Dublin Fingal, Green Party)
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I take the Deputy's point on retrofitting. It is just starting. Every year we look at how impactful it is. I refer, in particular, to the special enhanced grant equivalent to 80% of typical costs for attic and cavity wall insulation for all households. That can quickly reduce energy use as part of the Government's response to current exceptionally high energy prices.
On the additional needs payment, the Minister outlined earlier efforts to make it more accessible and we are looking at a way to apply for that online to do so. That is key. I take the Deputy's point about the importance of the budget coming up and the pressure that people are under.
Ruairi Ó Murchú (Louth, Sinn Fein)
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The household benefits package looks for the GPRN. Some of the people in communal heating systems do not have a number.
11:30 am
Joe O'Brien (Dublin Fingal, Green Party)
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These are people aged over 66 and some are over 70.
Ruairi Ó Murchú (Louth, Sinn Fein)
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I refer to the GPRN. We need to look at that facility. Anomalies will arise from time to time.