Billy Timmins (Wicklow, Fine Gael)
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Question 187: To ask the Minister for Social and Family Affairs the position in relation to persons who collect their social welfare payments from the post office if there is a strike in An Post; his plans for the delivery of same; and if he will make a statement on the matter. [37045/05]

Séamus Brennan (Dublin South, Fianna Fail)
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My Department has developed a range of contingency plans to address interruption in payments through the postal or post office counter services. These plans are kept under review to ensure that they offer the best response to any disruption to payments.

Among the approaches available to my Department is the option of changing the payment method used by the customer, changing the location where customers receive their payments or using my Department's nationwide network of offices to distribute payments.

My Department has arrangements with An Post for the delivery of social welfare payments. Where a disruption of the payment service takes place it is the responsibility of An Post to ensure that customers receive their payment. In these circumstances my Department maintains ongoing contact and communication with An Post management to ensure that any disruption of services has minimal impact on our customers. In the past, where a number of post offices have closed, arrangements were made to transfer payments to nearby post offices which continued to operate.

In situations where the postal services were disrupted arrangements were made to distribute cheques through the local and branch office network of my Department. This arrangement was most recently used when during a two week dispute in March 2004 affecting postal services in the Dublin area, when my Department's existing resources and services were used to implement a contingency plan by using social welfare local and branch offices as cheque collection centres.

Jerry Cowley (Mayo, Independent)
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Question 188: To ask the Minister for Social and Family Affairs if his Department will increase the fuel allowance rates as they are not sufficient and are becoming less so in view of the ever increasing fuel prices; and if he will make a statement on the matter. [37057/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Fuel allowances are a supplementary entitlement payable over the winter heating season to eligible people in receipt of pensions and other qualifying social welfare schemes. Some 274,000 people receive this allowance, at an aggregate cost of €85.4 million this year. Fuel allowances are incorporated in the recipient's weekly payment and are not intended to meet heating costs in full. The Government's objective is to ensure that the recipient's total weekly income, including the fuel allowance, is sufficient to meet all of their income needs, including heating costs.

The Government has concentrated budget resources on providing significant real increases over and above inflation each year in all primary social welfare pension, benefit and assistance rates. This is a more costly approach than increasing fuel allowances because the increase is paid for the full year and not just for the 29 weeks of winter heating season. This approach delivers a better outcome for pensioners and others by substantially increasing their income in real terms over the whole year, to better assist them in meeting their normal basic living costs, including heating.

For example, inflation including fuel price inflation has amounted to 12.8% since January 2002 when the value of fuel allowance was last increased. Total weekly social welfare rates incorporating fuel allowance have increased by between 33% and 37% in that period. Other related schemes, particularly the household benefits of electricity and gas allowances payable all year round, are also available to assist with heating costs.

Increases in the rate or duration of the fuel allowance would have significant cost implications. For example, increasing the fuel allowance by €1 per week would cost €8 million per annum. Increasing the duration of the fuel allowance by one week would cost just under €3 million per annum.

I am keeping the adequacy of the fuel allowance scheme under close review. Given these significant potential extra scheme costs, any increase in fuel allowance rates or duration are matters to be considered in the context of the forthcoming budget.