Regina Doherty (Meath East, Fine Gael) | Oireachtas source

I do not propose to accept this amendment because fuel allowance is just one element of the Government’s strategy to tackle energy poverty, which is a complex and multidimensional matter. Energy poverty exists when people are unable to adequately heat their homes or meet other necessary household energy services at an affordable cost. I said on Committee Stage in the Dáil that this amendment could not be accepted because it is not within my remit to look at the entire effects of energy policy, or lack thereof. It would fall under the remit of the Department of Communications, Climate Action and Environment to do so. My remit in this regard does not extend beyond income support. With the support of Fianna Fáil, we have extended the fuel allowance calendar by one week this year. I hope, expect and anticipate that with continued support, we will be able to continue to increase that calendar as the years go by.

In 2016, the Government launched a comprehensive strategy to combat energy poverty following extensive public consultation. This strategy, which was developed in the then Department of Communications, Energy and Natural Resources, builds on the progress and experience developed over the four years since the publication of the first Government strategy on affordable energy. It expands the reach of existing energy-efficiency schemes and commits the Government to developing and piloting new measures to find more effective ways to focus energy efficiency efforts on those who are most at risk of energy poverty, as described by Senator Devine. The strategy puts in place the structures and the accountability needed to ensure this challenge is effectively addressed at every level of the Government that has responsibility for addressing this issue. The only responsibility that the Department of Employment Affairs and Social Protection has in this regard is to ensure the income support payments it makes so generously are provided to the people who need them.

The fuel allowance scheme helps pensioners and other householders that depend on welfare to meet the cost of their heating needs during the winter season. It contributes towards a person's normal heating expenses. It has never been anticipated that it should meet these costs in full. Fuel allowance payments are made to more than 376,000 of the most disadvantaged householders in the country, including pensioners. I agree with Senator Devine that pensioners are most at risk of energy poverty. The amounts and duration of fuel allowance payments have been increased in recent years. In 2016, the fuel allowance rate was increased from €20 to €22.50 per week. In budget 2018, we increased the duration of this payment from 26 weeks to 27 weeks. This was done with the support of Fianna Fáil. On foot of genuine requests from the advocacy agencies that look after people in this category, in the past year we have agreed to change the way this payment is made so that it can be received in two lump sums. This option has been taken up and welcomed by tens of thousands of families.

The Department of Employment Affairs and Social Protection pays the household benefits package at an estimated annual cost of €232 million. That is on top of the €229 million annual cost of fuel allowance supports. Under the supplementary welfare allowance scheme, a weekly or monthly supplement can be paid to help people who are unable to meet their weekly payments because of certain circumstances. In many cases, this includes fuel supplement payments. Average household energy costs vary from €1,400 to €2,200, with significant variation between urban and rural households. The disparity between urban and rural households is largely based on the nature of the housing stock, because many houses in rural areas are much older and do not have the same energy ratings, and is one of the reasons for focusing on improving energy ratings through our local authorities. The disparity between single and couple households is one of the main reasons for the payment of the living alone allowance of €468 per year.

I do not propose to accept this amendment. As I have mentioned, a progressive and comprehensive cross-Government strategy on energy poverty is readily available and is currently being rolled out across various Departments. I plan to increase the duration of the fuel allowance calendar in future budgets.