Ruairi Quinn (Dublin South East, Labour)
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Question 376: To ask the Minister for Social and Family Affairs the cost of the fuel allowance scheme and the cost on a full year basis of increasing the fuel allowance from €9 per week to €18 per week; and if he will make a statement on the matter. [34270/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Fuel allowances are paid for 29 weeks from the end of September to mid-April each year. 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. An additional €3.90 per week is paid to eligible households in the designated urban smokeless fuel zones, bringing the amount payable in these areas to €12.90.

The Government has concentrated on increasing primary social welfare rates by amounts far in excess of inflation. This approach, though more costly than increasing fuel allowances specifically, delivers a better outcome for pensioners and others by substantially increasing their income in real terms over the whole year to help meet their heating and other day-to-day living costs.

An increase of €9 would bring the fuel allowance rate to €18 per week, or to €21.90 in designated smokeless zones. The full year cost of increasing the rate of fuel allowance by €9 a week during the winter heating season is estimated to be €157 million, an increase of nearly €72 million over the existing annual cost of €85.4 million. If the fuel allowance rate was increased by €9 and paid for the full 52 weeks of the year, the total scheme cost would be €281 million, an increase of nearly €196 million on the existing cost.

I am keeping the fuel allowance scheme under active review. However, given the very significant cost implications, any change to the scheme rates or duration 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.