Seanad debates

Tuesday, 29 March 2022

Nithe i dtosach suíonna - Commencement Matters

Energy Prices

2:30 pm

Photo of Sharon KeoganSharon Keogan (Independent) | Oireachtas source

The Minister of State is welcome to the House. I thank him for coming in to answer this matter. I raise this matter because it has been brought to my attention by an Independent county councillor in Cork, Mr. Declan Hurley. Much attention has been paid in recent weeks to the rising cost of living in Ireland. We are not unique in that respect in the western hemisphere. From cuts in excise duty to lump sum payments, the Government is engaging in a suite of measures to aid families and individuals in maintaining their standards of living in the face of inflation. This is to be recognised and to be commended.

One area that has proved particularly problematic is that of energy in its broadest sense, from home heating to petrol to home electricity to broadband. Earlier this month, the once-off payment of €125 to those who are in receipt of the fuel allowance was allocated. This was a bonus to those who are feeling the pinch of rising costs in that area. However, a key aspect of this kind of assistance is the threshold associated with it. The cut off, which is usually based on income, decides exactly how many households can avail of it. As important as it is to raise payments, lump sums or awards to react quickly to changing circumstances in the economy, it is equally important to examine and to appraise the threshold.

Many families find themselves having to pay close attention to their weekly earnings. They are becoming wary of additional sources of income and raises as they may end up losing out on items of State assistance, resulting in a net loss of income. While making this distinction between eligible and ineligible households is flawed, it remains the most efficient way of administering such schemes.However, this only remains true if that threshold accurately reflects the reality of the experience of families in the country and is raised or lowered to maintain the balance of expenditure and need.

In light of the expenses faced by families in the area of fuel and energy, I ask the Minister for Social Protection to make the necessary arrangements with the Minister for Public Expenditure and Reform to raise the qualifying income threshold for the fuel allowance. The current income levels for receipt of the fuel allowance are as follows: €373.30 for a single person aged under 80 years; €542 for a couple where the qualified adult is aged under 66 years; and €600.30 for a couple where the qualified adult is aged 66 years or over.

My ask of the Government is that the fiscal examination of the effects of the inflation on fuel and heating costs take place and that this informs a raising of these income thresholds by an amount deemed proportionate to allow households with stretched budgets to avail of the support. I ask that the Minister for Social Protection indicate whether this option is one she will investigate. If not, what measures does she have in mind in order to further alleviate the burden of heating costs on the most vulnerable?

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