Richard Bruton (Dublin North Central, Fine Gael)
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Question 291: To ask the Minister for Social and Family Affairs if he has reviewed the adequacy of the present fuel scheme in view of the substantial increase in the price of gas and electricity; when the value of the fuel scheme was last increased; the value of the allowance if it had been indexed in line with energy prices over the intervening period; and if he will make a statement on the matter. [27803/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The aim of the national fuel scheme is to assist householders on long-term social welfare payments with meeting the cost of their additional heating needs during the winter season. Fuel allowances are paid for 29 weeks from the end of September to mid-April and are not intended to meet the full cost of heating. Some 274,000 customers, 151,000 with basic fuel allowance and 123,000 with smokeless fuel supplement, benefit under the scheme at a cost of €85.4 million in 2005.

Under the scheme, a fuel allowance of €9 per week is paid to eligible households during this 29 week winter heating period, with an additional €3.90 per week payable in the designated urban smokeless fuel zones. These rates were increased to these levels in January 2002. The position is being kept under review.

According to the Central Statistics Office, CSO, the overall consumer price index has increased by 11.8% from the start of 2002 to August 2005. The price of solid fuels has increased by 15.2% in this period. An increase in the fuel allowance rates to match solid fuel price inflation since 2002 would bring its rate to about €10.40 or €14.90 in smokeless fuel areas. It is estimated that such an increase would cost of the order of €13 million extra in a full year.

While not increasing the value of fuel allowances which are payable for only part of the year, Government policy has been to increase primary payment rates by amounts well in excess of inflation. This is a more costly approach than increasing fuel allowances but it delivers a better outcome for pensioners and others by substantially increasing their real income over the whole year.

Pensioners and other eligible groups have received cumulative increases of between 33.6% and 37.3% in their primary social welfare payment rates since 2002. These higher rates of primary payments are payable over 52 weeks of the year and have improved the income situation of welfare recipients considerably in real terms relative to solid fuel cost increases and to price inflation generally. For example, a single person on a contributory old age pension has received an increase of €32 per week over the last three budgets when fuel allowances were held constant. This is approximately double the amount required to compensate for all the inflation, including fuel price inflation.

In addition to fuel allowance, more than 300,000 pensioners and their households qualify for electricity or gas allowances through the household benefits package, payable towards their heating, light and cooking costs throughout the year at an overall cost of €108.8 million in 2005. There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs.