Jerry Cowley (Mayo, Independent)
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Question 390: To ask the Minister for Social and Family Affairs if he intends to amend the current fuel allowance rate; if not, the reason therefor; and if he will make a statement on the matter. [31730/05]

Séamus Brennan (Dublin South, Fianna Fail)
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In recent years the Government has concentrated on increasing primary social welfare payment rates by amounts far in excess of inflation. This approach, although more costly than increasing fuel allowances, delivers a better outcome for pensioners and others by substantially increasing their real income over the whole year.

Since 2002, pensioners and other eligible groups have received cumulative increases of between 33.6% and 37.3% in their primary social welfare payment rates. These higher rates of primary payments are payable for the full 52 weeks of the year as opposed to the 29 weeks for which the fuel allowance is paid. This approach has 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 inflation, including fuel price inflation.

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. In addition to fuel allowance, over 320,000 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. As structured, these allowances are linked to unit energy consumption, so that recipients are protected against unit price increases. There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs.

I consider it important to continue the policy of concentrating available budget resources to providing real increases to these primary social welfare rates and to move towards the targets set out in the national anti-poverty strategy. This is aimed at ensuring that people who depend on social welfare income support will have adequate income to meet their normal living expenses, including their heating costs. This approach will involve compensating them fully for all price inflation, including fuel price inflation, and providing additional increases over and above that in their year round weekly payments.

However, I am keeping the fuel allowance under active review. Any change to the scheme would have very significant cost implications and would have to be considered in the context of the budget and in the light of the resources available to me for improvements in social welfare generally.