Violet-Anne Wynne (Clare, Independent)
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I wish to speak on the household benefits package, in particular the energy allowances aspect. As the Minister of State knows, the household benefits package is a set of allowances to help with the cost of living, specifically electricity or gas costs. The package is available to those aged 70 and over and to some aged under 70 in certain circumstances - those on disability allowance or carer's allowance who are living with the person they care for, to name but a few. The package is available to our most vulnerable citizens and that needs to be stated from the outset. We know that cold homes are associated with worsening health conditions and, sadly, with poor mental health. Our most vulnerable should never be left facing a choice between heating and eating. That is a society that we all wish to live in.

The electricity or gas allowance has a value of €1.15 per day and is payable monthly to the equivalent of €8.05 for per week. In 1968, the original electricity gas allowance came into effect and allowed for 100 free units every two months. It was then benchmarked to the number of units of electricity or gas consumed. Most important, the value of the payment rose in tandem with price changes. In 2008, the allowance covered 2,400 units per year which, unfortunately, was lowered to 1,800 units in 2011. Significantly, in 2013 the whole structure of the allowance was changed from a set number of units to a cash amount which, as I mentioned, only equated to €8.05 per week. At the time, it was argued that this approach would encourage people to switch energy provider, giving them bargaining power, for example. However, that does not account for the change in value to the person in receipt of the package.

The major disadvantage of decoupling the allowance from units is that during periods of price increases, the real value of the allowance is significantly reduced in terms of its purchasing power. This year, we have seen hyperinflation and many families have entered energy poverty, spending more than 10% of their income on their electricity bills. This is likely to continue and be further exacerbated by fossil fuels through the transition to a low-carbon economy.

I acknowledge, as I am sure the Minister of State will, the Government's extension of the fuel allowance to more people through the new threshold and the various cost-of-living payments over the past year. Obviously, any help and support for our most venerable is welcome. However, it was a small glimmer of hope in a black hole of despair of rising costs that seemed to be everywhere because they were affecting our most basic essentials. The electricity allowance of €8.05 per week has not increased in ten years and it is now worth 29% less than it was in 2013 due to the higher cost of electricity. Similarly, the gas allowance is worth 22% less than it was in 2013. It is a desperate state of affairs.

I cannot help but question how we got here and how it got this bad. Last year, Age Action Ireland put together an energy guarantee for older persons and I commend it on the great work done there. It proposed an energy guarantee for older persons which would be a cash payment but one which would be set against an objective benchmark in respect of units of energy. The aim should be to assist all recipients to obtain their basic need for adequate home heating with the exact amount of the payment to be calculated based on their household income and their homes' building energy rating, BER, housing type and fuel source. The value of the new cash payment should be indexed against market energy prices, so that if it rises or falls, the value of the payment continues to provide the same quantity of energy in kilowatt-hours so that everyone, people with disabilities, carers, etc., can always meet their basic home heating needs. On behalf of Age Action Ireland and the 500,000 households who are 30% worse off than they were under this payment ten years ago, I ask the Minister to consider this proposal for budget 2024.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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Gabhaim buíochas leis an Teachta as an gceist seo. The household benefits package comprises the electricity or gas allowance, and the free television licence. The Department of Social Protection will spend approximately €285 million this year on the household benefits package for more than 510,000 customers and their households.

The household benefits package is available to those aged 70 or over, regardless of means and household composition and subject to one package per household. It is also available as a supplementary allowance to those in receipt of various social welfare payments, including but not limited to carer's allowance, State contributory pension, State non-contributory pension and widow's-widower's or surviving civil partner's contributory pension. While there has been no recent increase to the gas-electricity element of the household benefits package, the Government instead has targeted resources available to it towards increases to core social welfare payments and to more targeted payments such as the fuel allowance.

It is important to note that these targeted increases were informed by the Economic and Social Research Institute, ESRI, research, which indicated that certain household types, such as those living alone, were at a higher risk of poverty than other households.

During the period referred to by the Deputy, the living alone increase, which is an extra payment for people who are living alone and receiving certain social welfare payments, has increased from €7.70 to €22 per week, an almost tripling of the weekly rate. Also, during that period, the weekly rate of the fuel allowance payment has increased by 65% from €20 to €33 a week. There has also been significant expansion of the fuel allowance qualifying criteria and in budget 2023, the Minister, Deputy Humphreys, announced the largest ever expansion of the fuel allowance criteria.

From January 2023, a new fuel allowance means threshold was introduced for people aged 70 years and over. The new means threshold is €500 for a single person and €1,000 for a couple. Under the formula used to assess means for the fuel allowance for over 70s, the threshold for capital that is disregarded in the assessment was increased from €20,000 to €50,000. The weekly means threshold for those aged under 70 was increased by €80 to €200 above the appropriate rate of the contributory State pension.

Similarly, the allowable means for household benefits purposes for those aged between 66 and 69 not in receipt of a qualifying payment was also increased by €80 to €200 above the appropriate rate of the contributory State pension.

The Government is also aware of the increased cost of living and, in budget 2023, has provided an unprecedented response that aims to ease the financial pressure on households throughout the State. Government cost-of-living measures included a cost-of-living double payment paid to social protection recipients in October. A €200 lump sum payment was paid to pensioners and people with a disability receiving the living alone increase in November. A €500 cost-of-living payment was paid to people receiving carer's support grant, disability allowance, invalidity pension, blind pension and to those in receipt of working family payment. A €400 additional lump sum payment was paid to all households in receipt of the fuel allowance payment and a double month of child benefit was paid. In December, a Christmas bonus double payment was paid to 1.3 million social protection recipients. From January 2023, the maximum rate of core social welfare rates was increased and there were also increases to the qualified adult and qualified child rates. The enhanced electricity credit of €600 is another important Government measure to help mitigate the effects of the recent unprecedented rise in electricity prices.

Many of those in receipt of the household benefits package will also have benefited from these supports, which must be looked at in the round. All further measures, including any proposal to increase the electricity allowance as part of the household benefits package would only be considered while taking account of overall Government policy and budgetary considerations.

Violet-Anne Wynne (Clare, Independent)
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Gabhaim buíochas leis an Aire Stáit. This still does not account for the fact that this package has not been increased since 2013. There has been no increase for people even though we are experiencing hyperinflation. This is not lost on the public but I thank the Minister of State. As I said, this proposal from Age Action Ireland for an energy guarantee for older persons is very well put together and I advise him in the strongest possible terms to review it with a view to implementing it.

Another group I spoke to about this issue was the Society of St. Vincent de Paul in Clare. It mentioned that it wanted to see the introduction of a choice between the cash payment or the units offered to people. This is a common-sense approach and allows for people to decide what works best for them and for their circumstances. We know that the one-size-fits-all approach is not working. If people want the cash payment for bargaining power, or if they would rather keep the units offered and for it to go directly to the provider, so be it.

Another consideration I would like to raise with the Minister of State are the standing charges as part of the energy allowances in the household benefits package. As I said, the payment has not gone up in ten years and the people in receipt of it are roughly 30% worse off than they were ten years ago. What has gone up in that intervening time, however, are the standing charges which all of these providers have been charging their customers. The current household benefits package simply does not accommodate some of the eye-watering standing charges being imposed on customers by their providers and if the Minister of State does nothing else on foot of this Topical Issue matter, I encourage him to close that gap by any means possible.

We all know from the household bills how inflated the standing and hidden charges have become, but in rural Ireland, we are paying an average of €35 more in standing charges to the ESB in the year than our counterparts in more urban areas. When rural Ireland says it is forgotten about or when the Dáil does not see beyond the M50, eyes can no longer roll. One can understand that sentiment when one can see clearly that those in receipt of this package are worse off than they were ten years ago. However, that is exacerbated further by the very fact that one lives in a rural area.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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Gabhaim buíochas leis an Teachta arís. To reiterate, the Minister certainly gives consideration to proposals by the Society of St. Vincent de Paul, Age Action and other agencies in her work in trying to ensure those most vulnerable are supported in the best way possible. That is what the Government is trying to achieve and the ESRI has supported the direction we have taken as being the correct one with regard to targeting the supports we have put in place. The Government provided very significant funding to meet the overall increase in the cost of living through the budget 2023 package. It is the largest amount ever in a range of one-off necessary measures, and they were necessary. It was important we did that.

I reassure the House that the Government will keep the evolving situation under close review and will monitor the effects of those measures in the short to medium term. Underlining the Government's continuing commitment to address the increased cost of living being experienced by people, an additional €260 million social welfare package was paid to families, pensioners, carers and people with disabilities last week. I reiterate that the Department of Social Protection provides a number of more targeted payments to help people with their household costs, including the fuel allowance, the living alone allowance and the telephone support allowance. I would especially like to highlight that the Department of Social Protection operates an additional needs payment as part of the supplementary welfare allowance scheme, where people have an urgent need which they cannot meet from their own resources.

The Deputy raised an important issue but I believe the Government has responded and is continuing to respond in an evolving situation. It is fluctuating quite a good deal but it is important we do this. Obviously, I cannot pre-empt what is going to be in the budget package for 2024 but the Minister has been very progressive in trying to address those most in need and the most vulnerable households through this very difficult and challenging time.